UPDATE 1-Ethan Allen leaving Calif. plant, expanding in NC
* Moving production to North Carolina from California
* 65 employees, 137 contract jobs will be affected
* Taking charge of 6 cents to 7 cents per share after tax
NEW YORK, June 3 (Reuters) - Ethan Allen Interiors Inc (ETH.N) said on Wednesday it planned to move its Chino, California upholstery operations to North Carolina, affecting 65 employees and 137 contracted workers.
Ethan Allen said in a statement that it expects to take an after-tax charge of $1.7 million to $2.0 million, or 6 cents to 7 cents per share, most of which would be recorded in the quarter ending June 30, 2009.
The company said it would be expanding its operations in Maiden, North Carolina, where it has had a plant since 1949 and employs 540 people. It said it expected to add 302 jobs over the next three years.
The operation in Chino is its only leased facility, Ethan Allen said in the statement.
Chief Executive Farooq Kathwari said the company was taking the action because of the "severe recession" and that expansion of the Maiden facility would start immediately. (Reporting by Dhanya Skariachan; Editing by Toni Reinhold)
