Virco

Virco Manufacturing Corporation

File:Virco logo.jpg
Company type	Public
Traded as	Template:NASDAQ
Industry	Furniture manufacturing School furnishings retailer
Founded	1950 (1950) Los Angeles, California, U.S.
Founder	Julian Virtue
Headquarters	Torrance, California , U.S.
Area served	United States and Canada
Key people	Robert A. Virtue - Chairman and CEO Douglas A. Virtue - President
Revenue	$191.1 million (FY 2019)
Operating income	$5.92 million (FY 2019)
Net income	$2.34 million (FY 2019)
Total assets	$138.99 million (FY 2019)
Total equity	$54.82 million (FY 2019)
Owner	Virtue Family (34.4%)
Number of employees	825 (FY 2019)
Website	virco.com

Virco Manufacturing Corporation is an American furniture producer based in Torrance, California, primarily serving educational institutions. Its product portfolio encompasses student desks, activity tables, seating for schools and offices, computer workstations, lightweight folding tables, and cushioned chairs. Virco’s business strategy focuses on the education market throughout the United States and Canada, utilizing its strong market position to remain a leading supplier of school furniture.

Origins and initial development

Prior to establishing Virco, Julian Virtue co-founded Virtue Chrome Plating—later renamed Virtue Brothers Manufacturing Company—with his brother Philip in August 1926. This enterprise initially specialized in custom nickel and chrome plating services for furniture manufacturers. By the mid-1930s, the company expanded its operations to produce its own furniture lines, including dinette sets, chrome-finished office chairs, and salon equipment. During World War II, the firm became a significant supplier to the military, manufacturing furniture for US Navy vessels and producing thousands of bunk beds for Army and Marine Corps barracks. After the war, it continued as a major military contractor while growing its consumer furniture segment. Following internal disputes, Julian departed from the company with a settlement of $1 million; Philip remained at the helm of Virtue Brothers.

In February 1950, Julian Virtue launched Virco in Los Angeles, establishing its initial manufacturing plant on Vermont Avenue. To enhance growth prospects rapidly, he acquired Slauson Aircraft Company—a school furniture manufacturer holding an important contract with the Los Angeles School Districts. This acquisition swiftly positioned Virco as the foremost school furnishings provider in the Greater Los Angeles area.

Expansion and development

In 1954, Virco broadened its reach by acquiring Dunn Furniture Company located in Conway, Arkansas, which enabled it to establish a nationwide footprint with sales extending along both the East Coast and West Coast, thereby significantly increasing sales volume. Julian’s son Robert joined the company in 1956 and gradually advanced into management roles alongside his father.

Virco went public in 1964. Confronted with escalating competition and labor expenses, the company pursued international expansion by inaugurating a manufacturing facility in San Luis Río Colorado, Mexico in 1971. This maquiladora operation allowed for reduced labor costs, enhancing profitability and facilitating Virco’s listing on the American Stock Exchange by 1977.

Throughout the 1980s and early 1990s, Virco sustained its growth trajectory while managing leadership transitions. Manufacturing capabilities expanded at Conway, which also developed into a distribution hub; meanwhile, the Mexican plant grew to nearly 1,200 employees. In 1984, Virco purchased a 55,000-square-foot facility in Newport, Tennessee from the financially troubled Heywood-Wakefield Company to produce melamine plastic chair seats, employing around 200 workers. Julian Virtue began semi-retirement as Robert assumed the presidency in 1982. Julian passed away in 1991; Robert had already taken on CEO duties in 1988 and chairman responsibilities in 1990.

Recent difficulties

Virco has encountered financial hardships in recent years, largely due to reductions in public school budgets and heightened competition from regional furniture manufacturers vying for school and government contracts. As a result, the company’s revenue and earnings have experienced notable volatility throughout the last twenty years.

To streamline expenses, Virco centralized its operations by moving to the current Torrance location in 1994, closing two facilities in the Los Angeles area, and divesting a 200,000-square-foot warehouse along with a 160,000-square-foot production plant in 2000 and 2003 respectively. The Mexico manufacturing site was also shut down in 1995 after sustaining fire damage and as part of efforts to improve profit margins. Additionally, the Newport facility ceased operations and was donated in 2002.

Financial overview

During fiscal year 2019, Virco recorded net sales close to $191 million and net earnings around $2 million, following a year in 2018 where revenue reached $201 million but resulted in a $2 million loss. After a seven-year pause, the company reinstated dividend payments, issuing five distributions between December 2017 and December 2018.

Virco’s operations are predominantly U.S.-based, with approximately 93.6% of revenue generated domestically and Canada contributing most of the remaining 6.4%. The firm maintains an estimated 50–60% share of the school furniture market in Los Angeles County and has historically been a leading player in the U.S. educational furniture sector.

Financial challenges

Virco’s financial peak occurred in the late 1990s, with its stock price reaching an all-time high of $17.50 per share in February 1998. That same year marked record profits approaching $18 million on revenues totaling $275 million. Revenue growth continued until it peaked at $287 million in 2000. Since then, revenues have declined, fluctuating between $158 million in 2012 and $229 million in 2007, averaging near $200 million annually. Over the past twenty years, Virco has only reported profits during seven years, including a significant loss exceeding $20 million in 2003.

Although cost-cutting measures have provided some relief, profitability remains vulnerable to fluctuations in raw material prices. Variability in steel, plastic, and wood costs has constrained margins, particularly after steel tariffs imposed under the Trump administration’s "America First" policy in 2018 caused substantial cost increases.

These financial pressures led to significant reductions in workforce size. Employee numbers peaked around 2,950 in August 2000 but dropped sharply following a voluntary separation program and layoffs in 2003 that cut over 600 positions. By early 2020, full-time staff had decreased to approximately 825—a reduction exceeding 70% since 2000. To manage seasonal production demands, Virco employs an additional 200–300 temporary workers.

Leadership

Robert Virtue, son of founder Julian Virtue, holds the positions of chairman and CEO at Virco. Born in 1932, he became a full-time member of the company in 1956. His son Douglas (Doug) Virtue has served as president since 2014 after joining the business in 1984.

The company’s board of directors was reduced from nine members to five in 2014 but expanded again to eight seats by 2020.

Environmental efforts

Virco has implemented significant environmental programs that have been acknowledged by agencies at the local, state, and federal levels. Under the leadership of President Doug Virtue, who also serves on the board of the Mono Lake Committee, the company integrates sustainability as a core component of its operational approach. Beginning with a recycling initiative in 1989, Virco had processed more than 313 million pounds of recyclable materials by the year 2010.

As a pioneer in its sector, Virco became the first classroom furniture producer to obtain GREENGUARD certification for indoor air quality specifically for children's products. By 2005, products holding this certification accounted for three-quarters of the company’s sales. In an effort to minimize waste, Virco replaced its wet paint processes with powder coating technology by 2002.

On a local scale, Virco received accolades from the Los Angeles County Sanitation Districts for its wastewater treatment and adherence to environmental regulations. At the state level, the company was honored multiple times by the California Integrated Waste Management Board for its achievements in reducing waste and diverting materials from landfills. Since joining the U.S. EPA’s WasteWise program as a founding member in 1994, Virco has maintained active participation and was inducted into the WasteWise Hall of Fame in 2003.

The company’s dedication to environmentally responsible practices has also been recognized through awards from organizations such as the General Services Administration, Sierra Club, and National Recycling Coalition, underscoring Virco’s commitment to sustainable operations both domestically and internationally.

Facilities

Virco maintains manufacturing operations in California and Arkansas. Its corporate headquarters are located in a leased 560,000-square-foot facility in Torrance, California, which also functions as a showroom and central site for manufacturing, distribution, and warehousing activities. In Conway, Arkansas, Virco owns three distinct facilities: a main complex spanning 1.2 million square feet that houses warehousing, production, and administrative offices; a 375,000-square-foot plant acquired in 1954 dedicated to chrome plating, steel fabrication, and plastic molding; and a 175,000-square-foot building purchased in 2017 focused on manufacturing components using hard plastic molds.

See also

• Herman Miller (manufacturer)
• La-Z-Boy