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ACTON ANNOUNCES CLOSING OF HICKORY WHITE COMPANY PLANT

 ACTON ANNOUNCES CLOSING OF HICKORY WHITE COMPANY PLANT
 RALIEGH, N.C., Nov. 11 /PRNewswire/ -- Acton Corporation (AMEX: ATN), Common Stock (ATN), $3.75 Cumulative Preferred Stock (ATNPR), today announced that Hickory White, its furniture manufacturing subsidiary, will close its White of Mebane factory in Mebane, N.C. The closing will affect approximately 200 employees and is attributed to the recession, a sluggish overall economy and decreased demand for upper-end bedroom and dining room furniture.
 Hickory White will consolidate all of its manufacturing of residential bedroom, dining room and occasional furniture at its Hickory Manufacturing complex of plants in Hickory, N.C. Production is being increased at that location effective immediately. Some equipment is being transferred there from the Mebane facility, and other improvements are being made so that the Company will be able to service its product lines without interruption. Current Hickory White collections will all be manufactured at the Hickory facility, including its new line of occasional tables and other products introduced at the Fall Furniture Market in October. The Hickory facility, encompassing 604,000 square feet of manufacturing and warehouse space, has sufficient capacity, after enhancements, to produce almost double the current rate of production of both Hickory Manufacturing and White of Mebane.
 White of Mebane was founded in 1881, and is one of the oldest casegoods factories in the furniture industry. The Company was owned and operated by the founding White family until its acquisition in 1985 by Hickory Furniture Company. The current Hickory White Company was formed in 1989 with the consolidation of Hickory Manufacturing, White of Mebane, KayLyn Upholstery (High Point) and Chaircraft (Hickory).
 "This has been a very difficult decision," stated Randy Austin, president of Hickory White, "White of Mebane has long been regarded as one of the finest plants in the industry. We appreciate the support of the Mebane community and the commitment of our dedicated employees. This recession has, for the first time in many years, had a tremendous impact on white-collar workers, many in upper income brackets. Those are our customers, and they are spending their home furnishings dollars on lower priced merchandise."
 Some departments will begin closing down in January, and production will cease shortly thereafter. Hickory White will provide severance bonuses for employees who remain until their departments are closed. The company will also offer displaced employees up to two quarters of Company-paid tuition for job skills training at Alamance Community College, and continuance of health insurance coverage for 18 months. The plant office will remain open after shutdown to advise, counsel and refer former employees to assistance programs.
 The Company estimates that the cost of closing the Mebane facility and transferring production to the Hickory plant will total approximately $1,800,000 which will be recorded as a charge against the Company's third quarter earnings. The Company anticipates lower operating and overhead costs resulting from the consolidation will favorably impact future reported results of operations.
 Hickory White is a full-line manufacturer of upper-end bedroom, dining room, occasional, upholstered and contract furniture headquartered in High Point, N.C. Acton Corporation is primarily engaged in specialized automobile insurance underwriting, manufacturing, real estate development, and the operation of a cable television system.
 -0- 11/11/92
 /CONTACT: Ruby Anderson, Shareholder Relations, Acton Corporation, 919-781-5611/
 (ATN) CO: Acton Corporation; Hickory White Company ST: North Carolina IN: SU:


MM -- CH011 -- 9927 11/11/92 17:46 EST
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Publication:PR Newswire
Date:Nov 11, 1992
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