UPDATE 1-Ethan Allen to close upholstery plant, take charge

SAN FRANCISCO, Jan 6 (Reuters) - Ethan Allen Interiors Inc (ETH.N) said on Tuesday it would consolidate operations of an upholstery factory and several retail service centers, with pretax charges expected of about $8 million to $9 million.

The furniture company said that after-tax restructuring, impairment and other related charges would crimp earnings by 18 cents to 20 cents per share.

Some 80 percent of those charges would be recorded in the quarter ended March 31, with the remainder in the quarter ended June 30.

Business currently serviced by the closing manufacturing plant in Eldred, Pennsylvania will now transfer to plants in California and North Carolina, where production will be expanded, Ethan Allen said.

The retail service centers to be consolidated impact about 350 employees, the company said. The centers will be relocated to larger facilities.

"This action will improve the efficiency of our logistical capabilities and strengthen our U.S. manufacturing operations," said Chief Executive Farooq Kathwari in a statement.

U.S. furniture companies, reeling from an industrywide sales slump amid declining home values, have been further hurt by the global financial crisis and credit crunch.

Shares of Ethan Allen, which are down 43 percent from a year ago, closed at $14.96, up nearly 4 percent, on the New York Stock Exchange. (Reporting by Alexandria Sage; Editing by Bernard Orr)