Connecticut-based furniture manufacturer Ethan Allen will make changes at two of its North Carolina plants. 

One is a shift away from case-goods production in its plant in Old Fort, near Asheville. The company says in a release that it's going to redo the plant as a distribution center for its growing federal government contracts.

"These decisions are not easy, especially as they affect approximately 325 of our associates in Old Fort, N.C. and 55 associates in Passaic, N.J.,” said Farooq Kathwari, Ethan Allen's Chairman, President, and CEO.

“I have had a personal close association with many of these associates for about forty years. They leave a legacy of fine artisanry, safety, and manufacturing leadership."

In its annual report, Ethan Allen said it has about 5,200 employees. It's unclear how many of those employees work in Old Fort.

The company also says it will expand its upholstery manufacturing plant in the Rockingham County town of Madison. The company plans to invest about $5 million to add about 80,000 square feet to the three-building campus.

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