Bad news will color the holiday weekend for about 400 employees of American of Martinsville.

The furniture workers learned Wednesday that they will lose their jobs by the end of August.

About 300 workers will continue to work at the company's Redd Level plant in Henry County. The affected workers produce wood furniture for American. Those who will remain make upholstered furniture in the same facility.

The company's primary markets are the hospitality industry, including major hotel chains, and the senior living or health care sector.

American plans to shift the bulk of its wood furniture production overseas.

Other furniture manufacturers in Henry County already have made that transition, which they say is necessary to remain competitive, and have made similar job cuts.

Noel Chitwood, American's president, said many of the workers who will lose their jobs are longtime employees -- a reality he said made the decision even tougher.

"We've had generations of workers at American of Martinsville," he said. "That makes this even more painful. It tugs at your heart strings."

The wood furniture produced at the Redd Level plant has included headboards, night stands, work desks, credenzas and other furnishings typical of hotel rooms and senior living facilities.

Bobby Mims, vice president of human relations, said the company will apply for federal Trade Adjustment Assistance for the employees facing unemployment during tough economic times.