BLUE MOUNTAIN (AP) — Berkline/Benchcraft LLC has announced plans to lay off some 400 workers at its upholstered furniture plant here.

The Morristown, Tenn.-based company said 135 workers will continue sewing operations in Blue Mountain.

The Knoxville (Tenn.) News-Sentinel newspaper also reported that Berkline was closing its Louden County, Tenn., plant, a move that would put another 40 people out of work by April 30.

Berkline shifted 150 jobs last year from its leather and fabric cutting operation in Morristown to Blue Mountain. It also moved the production of its stand-alone recliner production from Livingston, Tenn., to Blue Mountain, affecting about 250 jobs in East Tennessee.

The company closed its Baldywn, Miss., facility in August 2006, putting 400 workers out of work.