The shared services agreement between the two companies calls for American of Martinsville to make a $1.4 million capital investment in equipment at the Redd Level plant, according to a news release issued April 28 by the Martinsville-Henry County Economic Development Corporation and the Henry County Board of Supervisors.
An additional 94 new jobs will be available at the plant, which currently employs 121 people, with an average wage of $12.29 per hour.
As a result of the manufacturing consolidation, Barcalounger will move its corporate headquarters to American of Martinsville’s headquarters in Martinsville.
Forty people are currently employed at the headquarters, and 14 positions will be added to handle the Barcalounger line.
“Given the fact that both American of Martinsville and Barcalounger Home each have a company heritage that spans over 100 years, we intend to protect these carefully nurtured brands and build upon the strengths of both, collaboratively,” Noel Chitwood, president of American of Martinsville, said in the news release.