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Military contracts have helped shore up sagging sales at University Loft Co., the furniture maker federal agents raided two weeks ago.
University Loft specializes in dorm furniture, and colleges still account for the bulk of its revenue. The education market has turned fiercely competitive, however, and University Loft's work force is almost 50 percent off its recent peak.
"Our peak employment a couple of years ago was 400," founder and CEO James Jannetides said in an e-mailed response to IBJ's questions. "Currently we are down to only 210 with hopes of hiring more skilled wood and metal workers yet this year."
The company issued a press release highlighting its labor needs two days after the July 13 raid.
"Traditionally, our production followed the seasonal demand of schools across the USA," Jannetides said in the prepared statement. "But now with big box and government orders we are leveling out our need to a year-round work force."
University Loft currently has one multimillion-dollar contract that lasts into 2014 to supply metal furniture to the Marine Corps' North Carolina base Camp Lejeune. Two former employees, who asked not to be named, said the federal investigation is related to that contract.
Jannetides said...