UPDATE 1-Stanley Furniture posts wider Q1 loss, to cut jobs
* Q1 loss $1.85 vs loss $0.24, a yr ago
* Q1 rev $36.5 mln vs est $38 mln
* Says to cut about 530 jobs at Virginia locations
* Renegotiates terms of debt for pay down of notes
May 12 (Reuters) - Furniture maker and retailer Stanley Furniture Co Inc (STLY.O) posted a wider quarterly loss, and said it plans to cut about 530 jobs from its Virginia operations as part of a restructuring plan.
The company, which said first-quarter results were hurt by a goodwill impairment charge and manufacturing inefficiencies, also renegotiated the terms of its long-term debt to provide for a pay down of notes.
Stanley Furniture said financial covenants were relaxed through the first quarter of 2011 and while the interest rate on the notes would remain the same, the lender was now secured by company assets.
The company, which sees charges of about $12 million to 15 million in 2010 from its restructuring plan, said it would shift majority of the manufacturing of its adult product line from its Stanleytown facility to offshore vendors.
The company expects most of the job reductions in the fourth quarter of 2010.
For the first quarter ended April 3, it reported a net loss of $19.1 million, or $1.85 a share, compared with a net loss of $2.4 million, or 23 cents a share, a year ago.
The latest quarter loss included a goodwill impairment charge of $9.1 million and a $1.3 million charge to establish a valuation allowance against gross deferred tax assets.
Revenue fell 8 percent to $36.5 million.
Analysts on average were expecting loss of 24 cents per share on revenue of $38 million, according to Thomson Reuters I/B/E/S.
Shares of the Stanleytown, Virginia-based company closed at $9.44 Wednesday Nasdaq. (Reporting by Shobhana Chadha in Bangalore; Editing by Jarshad Kakkrakandy)