"Companies such as Stickley's that are setting up plants outside of the U.S. to be, so-called 'globally minded,' while at the same time claiming that the petition they filed against China will 'save American jobs,' are not fooling anyone"
Mike Veitenheimer Vice President and Counsel of The Bombay Company

The Furniture Retailers of America (FRA) today called the announcement by L. & J.G. Stickley Inc. -- one of 26 domestic furniture manufacturers that filed an antidumping petition to cut off access to Chinese wooden bedroom furniture imports -- to open a furniture plant in Vietnam yet more evidence that the trade case is not about 'saving jobs' but about greed.

"Stickley's announcement of its new furniture factory in Vietnam, which will begin producing furniture lines next year, is just one example confirming how absolutely baseless the petitioners claims are to protect and return jobs to the U.S. through the antidumping petition, when these same domestic manufacturers have already moved their imports from China to other countries such as Vietnam, Brazil, Chile and Indonesia," said Mike Veitenheimer, FRA spokesperson and Vice President and Counsel of The Bombay Company.

"Companies such as Stickley's that are setting up plants outside of the U.S. to be, so-called 'globally minded,' while at the same time claiming that the petition they filed against China will 'save American jobs,' are not fooling anyone. If the petitioners win, no jobs will be saved, but U.S. retailer jobs will be lost. The short term price disruptions and product shortages are almost certain to adversely affect sales of bedroom furniture leading to job losses for retail company employees. This has to be stopped. It's hypocritical, and benefits no one but the group of petitioners," he said.

Members of FRA include both national and small retail companies throughout the U.S., such as Rooms To Go, JCPenney's, Havertys, Crate & Barrel, The Bombay Company, City Furniture and Rhodes Furniture, among others. In a span of a few months, FRA has rapidly grown in membership because of the need to protect retail customers from possible restrictions on affordable high quality wooden bedroom furniture and the threat of short-term price volatility should duties, as high as 440%, be enacted by the ITC. FRA now represents well over 3,500 retail outlets and 200,000 associates/employees nationwide.

"Stickley's announcement comes as no surprise, as we know that some petitioners have been scrambling to move their importing systems to Vietnam and other countries should the duties that they asked for be imposed against China," said William Silverman, FRA Counsel and an attorney with Hunton & Williams. "Domestic manufacturers helped create the Chinese bedroom furniture industry years ago and now they are seeking duties only because many of them no longer serve as middlemen earning spreads of up to 40% on sales to U.S. retailers."

In testimony before the ITC in January, retailers, importers and trade experts testified that Chinese bedroom furniture imports have benefited domestic furniture manufacturers, retailers and consumers. Products from China have brought purchasers into the market by offering a broader range of furniture styles at affordable prices, and domestic furniture producers have themselves adopted blended production strategies (using both domestically produced and Chinese-made furniture in bedroom suites) to maximize profits.

On April 22nd, more than 300 retailers and importers attended a FRA briefing during the International Furniture Market in High Point, NC held to discuss the impact of the trade case on retailers, importers and customers. Full-page ads were taken out in trade magazines asking, "How Big Is Your Duty?" and stressing that beginning on June 17th, the day of the Department of Commerce's preliminary decision, retailers' bedrooms could be subject to huge import duties.

"The 300 enthusiastic retailers and importers in High Point committed themselves to the need to defeat this petition before bedrooms are subject to a variety of massive duties and our customers are affected," said Veitenheimer. "FRA will continue to vigorously fight for our millions of customers across the U.S. and for our thousands of hard-working employees. Consumers should not have to pay higher prices for wooden bedroom furniture and retail associates should not lose their jobs because of the greed of a few companies' and their refusal to compete in the international market."

The Furniture Retailers of America (FRA) is comprised of large and small retail companies throughout the U.S. formed to protect its customers from a group of domestic furniture manufacturers seeking to restrict consumer access to high quality wooden bedroom furniture by filing an anti-dumping petition with the U.S. International Trade Commission.