U.S. Furniture Maker's Reshoring Effort Fails as North Carolina Plant Closes

A North Carolina furniture plant opened by TOV Furniture co-founder Bruce Klinsky closed after 10 months, eliminating about 45 jobs as production shifted back to Asia. According to Sina Finance, Klinsky brought production to the United States amid changing U.S. trade policies after moving manufacturing from China to Vietnam. The factory, called Revival American Furniture, lost $3 million during its 10 months of operation. Klinsky estimated that each sofa made there lost more than $100, while the company’s Asian suppliers could produce sofas at substantially lower labor and materials costs. TOV had built annual revenue of more than $100 million selling furniture, including a $900 sofa aimed at consumers seeking an upgrade from IKEA. TOV now makes about 70% of its furniture in Vietnam. U.S. Customs and Border Protection detained 17 shipments, totaling about 45 containers, from the Vietnamese factory and assessed $135,000 in duties, saying the goods were effectively made in China. Klinsky disputes the finding and has appealed.