SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 1994 Commission file
Number 0-11577
LADD FURNITURE, INC.

(Exact name of registrant as specified in its charter)

North Carolina 56-1311320
(State or other jurisdiction of incorporation) (I.R.S. Employer
Identification No.)

One Plaza Center, Box HP-3
High Point, North Carolina 27261-1500
(Address of Principal executive offices) (Zip Code)

Registrant's telephone number, including area code 910-889-0333

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act:

Common Stock - $.10 par value

(Title of Class)

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days. Yes X No
___.

Indicate by check mark if disclosure of delinquent filers pursuant
to Item 405 of Regulation S-K is not contained herein, and will not be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-K
or any amendment to this Form 10-K [X]
Market value of 18,801,855 shares held by nonaffiliates as of
March 27, 1995, was $91,659,043.

Indicate the number of shares outstanding of each of the
registrant's classes of common stock, as of the latest practicable date.

23,171,799 shares outstanding as of March 27, 1995

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the definitive Proxy Statement for the 1994 Annual
Shareholders Meeting are incorporated by reference into Part III hereof.
Portions of the registrant's Annual Report to Shareholders for the year ended
December 31, 1994 are incorporated by reference into Part II and Part IV,
Item 14, hereof.

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PART I

ITEM 1. Business

General

LADD Furniture, Inc. is a vertically integrated manufacturer
that is primarily engaged in the design, manufacture and sale of
wood, metal, and upholstered furniture in various price ranges
through its operating entities consisting of wholly owned
subsidiaries and operating divisions. Unless the context
otherwise indicates, "LADD" and "Company" refer to LADD
Furniture, Inc., its divisions, and consolidated subsidiaries.

Significant Developments in 1994

Acquisition of Pilliod Furniture -- On January 31, 1994, the
Company acquired the furniture operations of The Pilliod Cabinet
Company through the purchase of all of the outstanding stock of
its parent company, Pilliod Holding Company. The Company's new
wholly-owned subsidiary, Pilliod Furniture, Inc. ("Pilliod") is a
major U.S. manufacturer of promotionally-priced, residential wood
furniture. Pilliod's master bedroom and other furniture lines
compliment products made and marketed by LADD's nine other
furniture companies.

Debt Financing -- On October 19, 1994, the Company completed
a refinancing of its long-term and short-term bank debt. The new
credit facility consists of a $75 million, five-year term loan
and a $115 million, five-year revolving credit facility. The new
credit facility is unsecured, reduces the Company's borrowing
rate, extends the amortization of the Company's term debt, and
provides expanded capacity to fund current and future needs.

LADD's Businesses

Lea Industries manufactures and sells wood furniture for the
youth and adult bedroom markets. Lea Industries' products
include beds, dressers, night stands, mirrors, desks,
bookshelves, hutches, armoires, and correlated modular furniture
in a variety of styles, including traditional, contemporary and
colonial. The products are priced in the medium to low-medium
price ranges and are considered high volume, promotional products
to major furniture retailers. The products are marketed under
the "Lea Industries," "Charter House," and "Design Horizons"
brand names primarily to national and regional chains,
independent furniture retailers, national general retailers and
department stores. Lea Industries' products are manufactured in
five plants located in Waynesville, NC, Marion, VA, Chilhowie,
VA, and Morristown, TN.

American Drew manufactures and sells medium to high-medium
priced wood furniture. The products include various types of
wood bedroom furniture (beds, dressers, night stands, mirrors,
armoires, and dressing tables), wood dining room furniture
(tables,

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chairs, buffets, chinas, and serving pieces), and wood living
room occasional pieces (desks, end tables, coffee tables,
entertainment units, wall units, and secretaries). American Drew
products are manufactured in three plants located in North
Wilkesboro, NC and are sold primarily to major independent
furniture retailers, department stores, and regional furniture
chains.

Daystrom Furniture manufactures and sells kitchen, dinette,
dining room, and bar furniture for the home furnishings market.
Daystrom products are priced in the medium price range and
include tables, chairs, bars and bar stools in contemporary
styles that incorporate the use of metal, glass, wicker, and wood
construction. Daystrom sells its products primarily to retail
furniture chains, independent furniture retailers, department
stores, and specialty retail stores. Daystrom operates one
manufacturing plant located in South Boston, VA.

Clayton-Marcus manufactures and sells a full line of
upholstered household furniture, including sofas, loveseats,
chairs, sleepers, rockers, and other upholstered living room
furniture, which sells in the medium and high-medium price
ranges. The products are marketed under the "Clayton-Marcus,"
"American of Martinsville," "Clayton House," and "Marclay Manor"
brand names primarily to retail furniture chains, independent
furniture retailers and department stores. Clayton-Marcus
currently has established galleries with approximately 95
independent furniture stores in the United States, Canada, and
Mexico. Clayton-Marcus operates three manufacturing plants in
Hickory, NC.

Barclay Furniture manufactures and sells moderately priced
upholstered furniture, including sofas, loveseats, chairs,
sleepers, and motion furniture styled in contemporary and
traditional patterns. The products are considered high volume,
promotional items and are sold under the Barclay Furniture name
and various private label names. Barclay sells its products
primarily to retail furniture chains, department stores, and
national general merchandisers. Barclay operates two
manufacturing plants located in Sherman, MS and Myrtle, MS.

American of Martinsville is a leading supplier of guest room
furniture to the U.S. hotel/motel industry, and has an expanding
contract business overseas. American of Martinsville has also
expanded its business into the health care furniture market for
retirement homes and extended care facilities. Additionally,
American of Martinsville sells to certain agencies of the U.S.
government and university and college markets. American of
Martinsville operates a manufacturing plant located in
Martinsville, VA.

Pennsylvania House is one of the nation's leading
manufacturers of American traditional and country residential
furniture, solid wood furniture and upholstery. The Pennsylvania
House product line is priced in the upper-medium price range.
Pennsylvania House created and introduced the in-store gallery
concept to the furniture retailing industry in 1975, and
currently has established galleries with approximately 270
independent furniture retailers in the U.S., Japan and Mexico.
To enhance its product lines and galleries,

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Pennsylvania House also offers its gallery retailers an accessory
line of over 3,000 items for sale to their customers. In addition,
Pennsylvania House has opened approximately 25 independently owned
dedicated showcase stores which offer exclusively Pennsylvania House
furniture and accessories and also owns four retail stores.
Pennsylvania House operates three manufacturing plants located in
Lewisburg, PA, Monroe, NC, and White Deer, PA.

Brown Jordan is a leading manufacturer of high quality,
high-priced leisure and outdoor furniture. To expand its market
presence, Brown Jordan has begun selling a line of high-medium
priced products in the casual furniture market. Brown Jordan's
products are designed in wrought aluminum, extruded aluminum,
cast aluminum, and wrought iron and include chairs, tables,
chaises and outdoor accessories. Brown Jordan sells its products
to the residential and hospitality markets primarily through the
following distribution channels: quality department stores,
specialty stores (such as pool and patio shops), interior design-
ers, and the commercial contract and hospitality industry both in
the United States and overseas. Brown Jordan's products are
manufactured in facilities located in El Monte, CA, Newport, AR,
and Juarez, Mexico. On March 1, 1994, a fire destroyed the
wrought iron manufacturing operations located in Brown Jordan's
manufacturing facility in Juarez, Mexico. The aluminum frame
operations located in the same facility were not materially
affected by the fire. The fire did not have a financial impact
as the Juarez facility was insured for both property and business
interruption losses. A new facility for wrought iron
manufacturing was leased and began operation during the fourth
quarter of 1994.

Fournier Furniture manufactures and markets a complete line
of ready-to-assemble ("RTA") furniture including home office and
home electronics furniture, kitchen and bedroom furniture, closet
organization products, kitchen cabinets and other storage
products. The company's products are priced in the lower price
ranges and are sold throughout the United States and Canada
principally to mass merchandisers, department stores, warehouse
clubs, and mail order catalog merchandisers. Fournier Furniture
operates one manufacturing facility in St. Paul, VA and has a
distribution facility located in Ajax, Ontario, Canada.

Pilliod Furniture, acquired by LADD on January 31, 1994,
manufactures and markets a wide range of promotionally priced
contemporary and traditional residential furniture, including
master bedroom products, occasional tables, entertainment
centers, wall systems, and dining room chinas. Pilliod
Furniture's products are marketed under the Pilliod and Symmetry
brand names. The majority of Pilliod Furniture's products
incorporate simulated wood, stone or other, often high gloss
decorative surfaces applied to medium density fiber board or
particle board. The company's products are sold throughout the
United States through large volume customers, mainly large
furniture chains and outlets. Pilliod Furniture operates three
manufacturing facilities in Nichols, SC, Selma, AL, and Swanton,
OH.

Lea Lumber & Plywood Co. manufactures cut-to-size plywood,
veneer, and wood laminated parts in one plant located in Windsor,
NC. Lea Lumber and Plywood's products

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are sold to furniture manufacturers and manufacturers of pianos,
recreational vehicles, kitchen cabinets, and other products
requiring laminated wood parts and veneers.

LADD Transportation, Inc. operates a modern fleet of over-
the-road tractors and trailers that are primarily used to provide
transportation services to LADD operating companies and to meet
the special needs of LADD's customers. Together with fleets
operated by other LADD operating companies, LADD Transportation
provides approximately 21% of LADD's out-bound shipping
requirements for finished products and also hauls a portion of
the Company's in-bound raw materials and supplies. LADD
Transportation has received certain contract carrier rights from
the Interstate Commerce Commission and markets its transportation
services to independent customers.

Marketing and Major Customers

The Company's operating entities generally market under
their own trade names. The general marketing practice followed
in the furniture industry and by the Company is to exhibit
products at national and regional furniture markets.
Internationally, the Company markets its products primarily
through LADD International, a corporate marketing unit formed to
coordinate the worldwide marketing efforts of LADD's operating
companies.

The Company also sells its furniture products directly and
through approximately 415 independent sales representatives to a
broad variety of customers, including retail furniture chains,
national general retailers, department stores, independent
furniture retailers, mail order catalog merchandisers, major
hotel chains, and various specialty stores and rental companies.
The Company currently sells to more than 8,500 furniture
customers. No single customer accounted for more than 5% of net
sales in 1994. The Company's business is not dependent upon a
single customer, the loss of which would have a material effect
on the Company.

Product Design and Development

Each operating entity develops and manages its own product
lines. New product groups are introduced at the national or
regional furniture markets, and, based upon their acceptance at
the markets, the products are either placed into production or
withdrawn from the market. Consistent with industry practice,
the Company designs and develops new product groups each year,
replacing collections or items that are discontinued.

Raw Materials

The most important raw materials used by the Company are
hardwood lumber, veneers, upholstery fabrics, plywood, particle
board, hardware, finishing materials, glass, steel, steel
springs, aluminum, and high pressure laminates. The wood species
include cherry, oak, maple, white pine, poplar, and other
American species, and imports such as rattan, guatambue and
mahogany. The Company believes that its sources of supply for
these

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materials are adequate and that it is not dependent on any
one supplier. However, dramatic escalation of costs of certain
lumber species such as cherry and maple in 1993 and the costs of
certain other raw materials such as particle board, multi-density
fiber board, aluminum, glass and cartons in 1994 negatively
impacted the Company's gross margins.

The Company's plants are heated by furnaces using gas, fuel
oil, wood waste, and other scrap material as energy sources. The
furnaces located at a majority of the wood manufacturing plants
have been adapted so that they can use alternate energy sources,
and the Company has been able to fuel these furnaces principally
by wood wastes. The Company's plants use electrical energy
purchased from local utilities. The Company has not experienced
a shortage of energy sources and believes that adequate energy
supplies will be available for the foreseeable future.

Patents and Trade Names

The trade names of the Company's divisions and subsidiaries
represent many years of continued business, and the Company
believes such names are well recognized and associated with
quality in the industry. The Company owns licenses which are
considered to be important to the business, which intellectual
properties do not have a limited duration. The Company also has
various licenses and trademarks, none of which are considered
material to the Company's business. In the first quarter of
1994, the Company transferred patents, trade names and certain
other intellectual property to a wholly owned subsidiary, Cherry
Grove, Inc., to better manage those intellectual properties. In
the fourth quarter of 1994, Cherry Grove, Inc. sold and leased
back certain of the patents.

Inventory Practices, Order Backlog and Credit Practices

The Company generally schedules production of its various
groups based upon orders on hand. Manufacturing efficiencies and
investment in inventories are, therefore, directly related to the
current volume of orders. The Company, and the industry
generally, honors cancellation of orders made prior to shipment.
The Company's backlog of unshipped orders believed to be firm at
1994 fiscal year end was approximately $85.2 million, as compared
to $80.6 million at 1993 fiscal year end. Generally, orders in
the backlog are shipped during the following 12 months. The
Company's businesses as a whole are not subject to significant
seasonal variations. The business of Brown Jordan, however, is
heavily seasonal with inventories being built in the winter
months and sales concentrated in the March - June time frame.

Competition

The residential furniture market is highly competitive and
includes a large number of manufacturers, none of which dominate
the market. Industry estimates indicate that there are over
1,500 manufacturers of all types of furniture in the United
States. Competition within the market for wood, metal and
upholstered furniture occurs principally

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in the areas of style or design, quality, price, and service. Some
of these include manufacturers of furniture types not manufactured
by the Company.
According to industry data, the Company believes it is the
fourth largest manufacturer of residential furniture in the
United States.

In recent years, foreign imports of finished furniture and
component parts have increased. Although some of the imported
products compete with products manufactured and marketed by the
Company, other than in its Daystrom Furniture operating division,
the Company has not experienced any significant negative impact.
Where appropriate, the Company has capitalized upon the cost
advantages of importing selected component parts and a limited
number of finished products but is not dependent upon any foreign
sources. The Company currently imports approximately $23.9
million of finished furniture and unfinished furniture parts.

In addition, Brown Jordan operates a manufacturing facility
in Juarez, Mexico. The Company estimates production in its
Mexican facility costs 25% to 40% less than comparable domestic
production principally because of lower labor and overhead costs
at the Mexican facility.

Governmental Regulations

The Company's operations must meet extensive federal, state,
and local regulatory standards in the areas of safety, health,
and environmental pollution controls. Historically, these
standard's have not had any material adverse effect on the Com-
pany's sales or operations. The Company believes that its plants
are in compliance in all material respects with all applicable
federal, state, and local laws and regulations concerned with
environmental protection. See "Legal Proceedings" regarding the
status of environmental proceedings in which the Company is
involved.

The furniture industry anticipates increased federal and
state regulation, particularly for emissions from furniture paint
and finishing operations and wood dust levels in manufacturing
operations. The industry and its suppliers are attempting to
develop water-based finishing materials to replace commonly used
organic-based finishes which are a major source of regulated
emissions. The Company cannot at this time estimate the impact
of compliance with these new standards on the Company's opera-
tions or costs of compliance.

Employees

The Company employed approximately 7,900 persons as of
December 31, 1994. Substantially all of the employees were
employed on a full-time basis.

Employees at six Company plants are represented by various
labor unions. The union contracts at Brown Jordan's Newport,
Arkansas facility and at Pennsylvania House's White Deer and
Lewisburg, Pennsylvania facilities expire in March and October
1995, respectively.

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The Company has been notified that a union election has been
scheduled for April 1995 at the St. Paul, Virginia facility of
Fournier Furniture, Inc. The Company considers its relations with
its employees to be good.

Export Sales

In 1994, the Company's export sales decreased to $33.8
million (approximately 5.7% of 1994 net sales), a decrease of
16.7% from export sales in 1993 of $40.6 million (approximately
7.8% of 1993 net sales). The Company's export sales in 1992 were
$29.3 million, or approximately 5.9% of 1992 net sales. None of
the Company's assets are dedicated solely to export sales.

ITEM 2. Properties

LADD and its operating companies operate 26 manufacturing
facilities, of which 25 facilities, approximately 7,100,000
square feet, are owned, and one facility, approximating 125,000
square feet is leased. These facilities range in size from
approximately 80,000 square feet to approximately 800,000 square
feet. Five of the manufacturing facilities (approximately 1.8
million aggregate square feet) are subject to encumbrances
associated with industrial revenue bond financings, the
outstanding balances of which aggregated approximately $7.5
million at December 31, 1994. The Company believes that each of
the current manufacturing plants are suitable and adequate for
the particular production conducted at that plant. During fiscal
1994, the Company estimates that its plants operated at
approximately 80% of total capacity on an aggregate basis. In
addition, the Company owns three warehouse facilities aggregating
approximately 290,000 square feet and leases five separate
warehouse facilities aggregating approximately 665,000 square
feet. The Company's manufacturing facilities are located in
North Carolina, Alabama, Arkansas, California, Mississippi,
Pennsylvania, Ohio, South Carolina, Tennessee, Virginia and
Mexico. The Company leases its corporate offices, which
aggregate approximately 38,000 square feet, in High Point, North
Carolina.

The Company believes that its manufacturing, warehouse and
office space is well maintained for its intended purposes.
Although the closure of any particular Company facility may be
disruptive to that particular operating entity's business, it
would not be materially adverse to the Company's operations.

The Company normally operates all of its furniture manu-
facturing facilities on a one shift per day, five-day week
basis. Increasingly, certain departments and facilities are
operated on a multi-shift basis. The plywood and ready-to-
assemble manufacturing facilities are typically operated on a two
shifts per day, five-day week basis.

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The Company also maintains showrooms, the majority of which
are leased, in High Point, NC, Dallas, TX, Chicago, IL, Miami,
FL, Washington, DC, Los Angeles and San Francisco, CA, Sherman
and Tupelo, MS, New York, NY, Edina, MN, Martinsville, VA,
Lewisburg, PA, and Ontario, Canada, and retail stores in Houston,
TX and Topeka and Shawnee, KS.

The Company owns rights to cut timber on approximately 300
acres of undeveloped timberland in eastern North Carolina.

The Company owns and leases substantial quantities of
woodworking, sewing and metalworking equipment located in its
various plants. The Company considers its present equipment to
be adequate, well-maintained, and generally modern.

The Company currently owns and leases approximately 125
tractors and 335 trailers.

ITEM 3. Legal Proceedings

The Company is involved in routine litigation from time to
time in the regular course of its business. In the opinion of
the Company, there are no material legal proceedings pending or
known to be contemplated to which the Company is a party or of
which any of its property is subject.

The Company presently is involved in the following
environmental proceedings:

1. Brown Jordan's California manufacturing facility is
located in El Monte, California in the San Gabriel Valley Ground-
water Basin. The Basin has been designated by the United States
Environmental Protection Agency ("EPA") and the State of
California as a Superfund Site. Although no administrative or
judicial enforcement action has been taken by the EPA or
applicable California authorities, the State of California is
seeking to identify potentially responsible parties ("PRPs") and
has ordered certain tests to be conducted by Brown Jordan in
connection with their investigation. Such tests have been
completed and no future activities are currently scheduled. In
May 1994, the Company joined the Northwest El Monte Community
Task Force, a PRP Group formed to respond to the EPA. Efforts to
negotiate an Administrative Order on Consent with the EPA are
ongoing. Under the terms of the Asset Purchase Agreement with
Maytag Corporation ("Maytag"), dated June 1, 1989 ("the Maytag
Agreement"), the Company's liabilities in the matter are limited
to the first $200,000 of costs for off-site liabilities and
$1,000,000 of costs for on-site liabilities. Through fiscal
1994, approximately $250,000 has been expended by the Company on
the El Monte site.

2. The Company's former subsidiary, The Gunlocke Company
("Gunlocke"), has been named as a PRP by the New York Department
of Environmental Conservation ("NYDEC") with respect to the
Prattsburg Landfill in Tonawanda, New York. NYDEC has

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to date not pursued Gunlocke concerning this matter. Instead, the
NYDEC has obtained from Steuben County a signed Consent Order for a
remedial investigation and feasibility study ("RI/FS") and a
remedy for the landfill. Steuben County subsequently submitted
its proposed RI/FS to the NYDEC for approval. The NYDEC approved
the RI/FS in February 1995. The NYDEC is currently preparing a
Remedial Action Plan based on the actions evaluated in the RI/FS.
Nevertheless, this action does not preclude the possibility that
the NYDEC, Steuben County or other third parties may subsequently
make claims against Gunlocke and other PRPs regarding this
matter. Under the terms of the Maytag Agreement, the Company's
liabilities are limited to $200,000 for all off-site liabilities
in the aggregate.

3. The current owner of the Baker Brothers Scrap Yard
Superfund Site in East Buffalo township, Pennsylvania identified
Pennsylvania House as a PRP in connection with this site.
Investigation is continuing to determine to what extent, if any,
Pennsylvania House transported hazardous waste material to this
site. The Company has notified Maytag regarding this matter.
Under the terms of the Agreement and Release as to Environmental
Claims dated March 31, 1994, between LADD and Maytag, the
Company's exposure is limited to the first $10,000 of costs and
expenses.

4. Gunlocke has been named as a PRP at the Rose Chemicals
Superfund Site in Missouri. Gunlocke has participated as a
member of the de minimis buyout group of PRPs. On September 2,
1992, the EPA signed an Unilateral Order. The PRP group Steering
Committee subsequently entered into negotiations with the EPA and
an Amended Order was issued on December 3, 1992. On December 24,
1992, the PRP group Steering Committee entered into an
Affirmative Response stating that the group would comply with the
Amended Order and complete the remediation. During 1993, a final
work plan was submitted to the EPA for approval and the PRP Group
anticipates that final remediation will be completed by April 1995.
Under the terms of the Maytag Agreement, the Company's
liabilities are limited to $200,000 for all off-site liabilities
in the aggregate.

The Company has also been named as a PRP, along with
numerous parties, at various hazardous waste sites undergoing
cleanup or investigation for cleanup. The Company believes that
at each of these sites, it has been improperly named or will be
considered a "de minimis" party. Although the Company believes
adequate accruals have been provided for environmental
contingencies, it is possible, due to uncertainties previously
noted, that additional accruals could be required in the future.
However, the ultimate resolution of these contingencies, to the
extent not previously provided for, should not have a material
adverse effect on the Company's financial position.

The Company is cooperating fully with government authorities
in each of these matters.

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ITEM 4. Submission of Matters to a Vote of Security Holders

No such matters were submitted to security holders of the
Company in the fourth quarter of fiscal year 1994.

PART II

ITEM 5. Market for the Registrant's Common Stock and Related
Security Holder Matters

The stock price data and common dividends per share and the
Stock Listing Information which appear on pages 31 and 32,
respectively, of the LADD Furniture, Inc. Annual Report to Share-
holders for 1994, are incorporated by reference in this Form 10-K
Annual Report.

There were approximately 925 security holders of record of
the Company's common stock as of March 20, 1995.

ITEM 6. Selected Financial Data

The summary of selected financial data for each of the
periods in the five-year period ended December 31, 1994, which
appears on page 26 of the LADD Furniture, Inc. Annual Report to
Shareholders for 1994, is incorporated by reference in this Form
10-K Annual Report.

ITEM 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations

Management's discussion and analysis of financial condition
and results of operations for the years ended December 31, 1994,
January 1, 1994, and January 2, 1993, which appears on pages 27 to
30 of the LADD Furniture, Inc. Annual Report to Shareholders for
1994, is incorporated by reference in this Form 10-K Annual
Report.

ITEM 8. Financial Statements and Supplementary Data

The consolidated financial statements, together with the
independent auditors' report thereon of KPMG Peat Marwick LLP
dated February 16, 1995, and the selected quarterly data,
appearing on pages 8 to 25 and page 31, respectively, of the
accompanying LADD Furniture, Inc. Annual Report to Shareholders
for 1994 are incorporated by reference in this Form 10-K Annual
Report.

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With the exception of the aforementioned information and the
information incorporated in Items 5, 6, 7, and 8, the LADD
Furniture, Inc. Annual Report to Shareholders for 1994 is not to
be deemed filed as part of this report.

ITEM 9. Changes in and Disagreements With Accountants on
Accounting and Financial Disclosure

No changes in accountants or disagreements with accountants
on accounting or financial disclosure occurred in fiscal years
1994 and 1993.

PART III

Part III is omitted as the Company intends to file with the
Commission within 120 days after the end of the Company's fiscal
year a definitive proxy statement pursuant to Regulation 14A
which will involve the election of directors. With the exception
of the information specifically required by Items 10, 11, 12 and
13 of this Part III contained in the Company's proxy statement,
the Company's proxy statement is not incorporated by reference
nor deemed to be filed as a part of this report, including
without limitation the Board Compensation Committee Report on
Executive Compensation required by Item 402(k) of Regulation S-K
and the Performance Graph required by Item 402(l) of Regulation
S-K.

ITEM 10. Directors and Executive Officers of the Registrant

See reference to definitive proxy statement under Part III.

ITEM 11. Executive Compensation

See reference to definitive proxy statement under Part III.

ITEM 12. Security Ownership of Certain Beneficial Owners and
Management

See reference to definitive proxy statement under Part III.

ITEM 13. Certain Relationships and Related Transactions

See reference to definitive proxy statement under Part III.

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PART IV

ITEM 14. Exhibits, Financial Statement Schedules, and Reports on
Form 8-K

Page in
Annual Report*

(a) The following documents are filed as part of this
report:

(1) Financial Statements

Consolidated Statements of Earnings for the
years ended December 31, 1994, January 1,
1994, and January 2, 1993 . . . . . . . . . . . . 9

Consolidated Balance Sheets as of December
31, 1994 and January 1, 1994 . . . . . . . . . 10

Consolidated Statements of Cash Flows for the
years ended December 31, 1994, January 1,
1994, and January 2, 1993 . . . . . . . . . . . . 11

Consolidated Statements of Shareholders'
Equity for the years ended December 31, 1994,
January 1, 1994, and January 2, 1993 . . . . . . 12

Notes to Consolidated Financial Statements . 13-25

Independent Auditors' Report . . . . . . . . . . 8

*Incorporated by reference from the indicated pages of
the LADD Furniture,
Inc. Annual Report to Shareholders for 1994.

(2) Index to Financial Statement Schedule:

Independent Auditors' Report . . . . . . . . . . . F-1

For the years ended December 31, 1994,
January 1, 1994, and January 2, 1993

VIII - Valuation and Qualifying Accounts and Reserves F-2

All other schedules are omitted because they
are not applicable or the required
information is shown in the financial
statements or notes thereto.

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(3) List of Executive Compensation Plans

LADD Furniture, Inc. 1994 Incentive Stock
Option Plan

Employee Restricted Stock Purchase Agreements
for all directors and the named executive
officers of the registrant as required by
Item 402(a)(2) of Regulation S-K

Executive Employment Agreements with each of
Richard R. Allen, Fred L. Schuermann, Jr.,
and Gerald R. Grubbs

LADD Furniture, Inc. Supplemental Retirement
Income Plan

LADD Furniture, Inc. Long-Term Incentive Plan

LADD Furniture, Inc. 1995 Management
Incentive Plan

(b) A Current Report on Form 8-K dated October 19, 1994 was
filed on November 14, 1994 reporting completion of the $190
million term and revolving loan financing with NationsBank
of North Carolina, N.A., as Agent.

3. Articles of Incorporation and Amendments.

(Previously filed as Exhibit 10 to Item 14 of
the Company's Annual Report on Form 10-K for
the year ended December 29, 1990, filed with
the Commission on March 28, 1991)

Bylaws (as amended February 25, 1993)

(Previously filed as Exhibit 3 to Item 14 of
the Company's Annual Report on Form 10-K for
the year ended January 2, 1993, filed with
the Commission on March 30, 1993)

10. LADD Furniture, Inc. 1994 Incentive
Stock Option Plan

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(Previously filed as Exhibit 10.1 to Item 6
of the Company's Quarterly Report on Form 10-
Q for the quarter ended July 2, 1994, filed
with the Commission on August 16, 1994)

Employee Restricted Stock Purchase
Agreement between the Company and
Don A. Hunziker dated February 28,
1991

Employee Restricted Stock Purchase
Agreement between the Company and
O. William Fenn, Jr. dated February
28, 1991

Employee Restricted Stock Purchase
Agreement between the Company and
Richard R. Allen dated February 28,
1991

Employee Restricted Stock Purchase
Agreement between the Company and
Fred L. Schuermann, Jr. dated
February 28, 1991

Employee Restricted Stock Purchase
Agreement between the Company and
Gerald R. Grubbs, dated February
28, 1991

(Previously filed as Exhibit 10 to Item 14 of
the Company's Annual Report on Form 10-K for
the year ended December 29, 1990, filed with
the Commission on March 28, 1991)

Employee Restricted Stock Purchase
Agreement between the Company and
Don A. Hunziker dated June 20, 1991

(Previously filed as Exhibit 10 to Item 14 of
the Company's Annual Report on Form 10-K for
the year ended December 28, 1991, filed with
the Commission on March 26, 1992)

Employee Restricted Stock Purchase
Agreement between the Company and
Richard R. Allen dated February 25,
1993

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Employee Restricted Stock Purchase
Agreement between the Company and
Gerald R. Grubbs dated February 25,
1993

Employee Restricted Stock Purchase
Agreement between the Company and
Fred L. Schuermann, Jr. dated
February 25, 1993

Employee Restricted Stock Purchase
Agreement between the Company and
William S. Creekmuir dated
February 25, 1993

(Previously filed as Exhibit 10 to Item 14 to
the Company's Annual Report on Form 10-K for
the year ended January 2, 1993, filed with
the Commission on March 30, 1993)

Employee Restricted Stock Purchase
Agreement between the Company and
Richard R. Allen dated February 24,
1994

Employee Restricted Stock Purchase
Agreement between the Company and
Gerald R. Grubbs dated February 24,
1994

Employee Restricted Stock Purchase
Agreement between the Company and
Fred L. Schuermann, Jr. dated
February 24, 1994

Employee Restricted Stock Purchase
Agreement between the Company and
William S. Creekmuir dated
February 24, 1994

(Previously filed as Exhibits 10.1 - 10.4 to
the Company's Annual Report on Form 10-K for
the year ended January 1, 1994, filed with
the Commission on March 31, 1994)

Enclosed as Exhibits 10.1 - 10.3 to this
Annual Report on Form 10-K for the year ended
December 31, 1994

10.1 Employee Restricted Stock Purchase
Agreement between the Company and
Richard R. Allen dated March 2, 1995

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10.2 Employee Restricted Stock Purchase
Agreement between the Company and Fred
L. Schuermann, Jr. dated March 2, 1995

10.3 Employee Restricted Stock Purchase
Agreement between the Company and
William S. Creekmuir dated March 2, 1995

Executive Employment Agreement
between the Company and Richard R.
Allen dated October 28, 1994

Executive Employment Agreement
between the Company and Fred L.
Schuermann, Jr. dated October 28,
1994

Executive Employment Agreement
between the Company and Gerald R.
Grubbs dated October 28, 1994

(Previously filed as Exhibits 10.1 - 10.3 to
Item 6 of the Company's Quarterly Report on
Form 10-Q for the quarter ended October 1,
1994, filed with the Commission on November
15, 1994)

Asset Purchase Agreement, dated as
of June 1, 1989, among the Company,
Maytag Corporation, The BJC Company
and The Gunlocke Company

(Previously filed as Exhibit 10(a) to the
Company's Current Report on Form 8-K, dated
as of June 1, 1989, filed with the Commission
on June 2, 1989)

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First Amendment and Waiver to Asset
Purchase Agreement, dated as of
July 7, 1989, by and among the
Company, Pennsylvania House, Inc.,
The McGuire Furniture Company, The
Kittinger Company, Charter
Furniture, Inc., Brown Jordan
Company and The Gunlocke Company, a
North Carolina corporation, and
Maytag Corporation, The Gunlocke
Company, a Delaware corporation,
and The BJC Company

(Previously filed as Exhibit 10 to the
Company's Current Report on Form 8-K, filed
with the Commission on July 21, 1989, as
amended by Form 8 filed with the Commission
on September 18, 1989)

LADD Furniture, Inc. Supplemental
Retirement Income Plan

(Previously filed as Exhibit 10 to the
Company's Annual Report on Form 10-K, for the
year ended December 30, 1989, filed with the
Commission on March 30, 1990)

LADD Furniture, Inc. Long-Term
Incentive Plan

(Previously filed as Exhibit 10 to the
Company's Annual Report on Form 10-K, for the
year ended December 29, 1990, filed with the
Commission on March 28, 1991)

Amended and Restated Credit
Agreement, dated as of October 19,
1994, between the Company,
NationsBank of North Carolina, N.A.
as agent, and each of the banks
signatory to the Credit Agreement

(Previously filed as Exhibit 10.1 to the
Company's Current Report on Form 8-K, dated
October 19, 1994, filed with the Commission
on November 14, 1994)

Enclosed as Exhibit 10.4 to this Annual
Report on Form 10-K for the year ended
December 31, 1994

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10.4 First Amendment to Amended and
Restated Credit Agreement dated as
of February 16, 1995, between the
Company, NationsBank, N.A., as
agent and each of the banks
signatory thereto.

Equipment Leasing Agreement dated
as of December 15, 1994 between BOT
Financial Corporation and the
Company

Equipment Leasing Agreement dated
as of December 15, 1994 between
UnionBanc Leasing Corporation and
the Company

(Previously filed as Exhibits 10.1 and 10.2
to Item 7 of the Company's Current Report on
Form 8-K, dated December 28, 1994, filed with
the Commission on January 15, 1995)

Enclosed as Exhibit 10.5 to this Annual
Report on Form 10-K for the year ended
January 1, 1994

10.5 1995 Management Incentive Plan

Enclosed as Exhibit 13.1 to this Annual
Report on Form 10-K for the year ended
December 31, 1994

13.1 1994 Annual Report to Shareholders

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22. Subsidiaries of Registrant

American Drew, Inc., a North Carolina corporation

American Furniture Company, Incorporated, a

Virginia corporation

Barclay Furniture Co., a Mississippi corporation

Brown Jordan Company, a North Carolina corporation

Cherry Grove, Inc., a Delaware
corporation

Clayton-Marcus Company, Inc., a North Carolina
corporation

Fournier Furniture, Inc., a North Carolina
corporation

Kenbridge Furniture, Inc., a North Carolina
corporation

LFI Capital Management, Inc., a Delaware
corporation

LADD Transportation, Inc., a North Carolina
corporation

Lea Industries, Inc., a North Carolina corporation

Lea Industries, Inc., a Tennessee corporation

Lea Industries, Inc., a Virginia corporation

Lea Lumber and Plywood Co., a Virginia corporation

LADD Contract Sales Corporation, a North Carolina
corporation

LADD Funding Corp., a Delaware corporation

LADD International Sales Corp., a Barbados
corporation

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Pennsylvania House, Inc., a North Carolina
corporation

Pilliod Furniture, Inc., a North Carolina
corporation

Enclosed as Exhibit 24.1 to this Annual
Report on Form 10-K for the year ended
December 31, 1994

24.1 Consent of KPMG Peat Marwick LLP

Enclosed as Exhibit 27.1 to this Annual
Report on Form 10-K for the year ended
December 31, 1994

27.1 Financial Data Schedule (EDGAR version only)

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SIGNATURES

Pursuant to the requirement of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned, there-
unto duly authorized.

LADD FURNITURE, INC.
(Registrant)

By s/William S. Creekmuir 3/30/95
William S. Creekmuir (Date)
Senior Vice President, Chief
Financial Officer, Secretary, and
Treasurer (Principal Financial
Officer)

Pursuant to the requirements of the Securities Exchange Act
of 1934, this report has been signed below by the following
persons on behalf of the Registrant and in the capacities and on
the dates indicated.

s/Don A. Hunziker 3/30/95 s/Richard R. Allen 3/30/95
Don A. Hunziker (Date) Richard R. Allen (Date)
Director Chairman of the Board and
Chief Executive Officer and
Director

s/O. William Fenn, Jr. 3/30/95 s/Daryl B. Adams 3/30/95
O. William Fenn, Jr. (Date) Daryl B. Adams (Date)
Director Vice President, Corporate
Controller, Assistant Secretary,
and Assistant Treasurer (Principal
Accounting Officer)

s/Thomas F. Keller 3/30/95 s/James H. Corrigan, Jr. 3/30/95
Thomas F. Keller (Date) James H. Corrigan, Jr. (Date)
Director Director

s/William B. Cash 3/30/95 s/William S. Creekmuir 3/30/95
William B. Cash (Date) William S. Creekmuir (Date)
Director Senior Vice President, Chief
Financial Officer, Secretary,
and Treasurer (Principal
Financial Officer)

s/Fred L. Schuermann, Jr. 3/30/95
Fred L. Schuermann, Jr. (Date)
President, Chief Operating Officer and
Director

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INDEPENDENT AUDITORS' REPORT

The Board of Directors
LADD Furniture, Inc.:

Under date of February 16, 1995, we reported on the
consolidated balance sheets of LADD Furniture, Inc. and
subsidiaries as of December 31, 1994 and January 1, 1994 and
the related consolidated statements of earnings,
shareholders' equity and cash flows for each of the years in
the three-year period ended December 31, 1994, as contained
in the 1994 annual report to shareholders. These
consolidated financial statements and our report thereon are
incorporated by reference in the annual report on Form 10-K
for the year ended December 31, 1994. In connection with
our audits of the aforementioned consolidated financial
statements, we also have audited the related financial
statement schedule as listed in the accompanying index.
This financial statement schedule is the responsibility of
the Company's management. Our responsibility is to express
an opinion on this financial statement schedule based on our
audits.

In our opinion, such financial statement schedule, when
considered in relation to the basic consolidated financial
statements taken as a whole, presents fairly, in all
material respects, the information set forth therein.

As discussed in notes 1 and 11 to the consolidated financial
statements, the Company adopted the provisions of the
Financial Accounting Standards Board's Statement of
Financial Accounting Standards No. 106, "Employers'
Accounting for Postretirement Benefits Other Than Pensions,"
in 1993.

KPMG PEAT MARWICK LLP

Greensboro, North Carolina
February 16, 1995

Schedule VIII
LADD FURNITURE, INC. AND SUBSIDIARIES
Valuation and Qualifying Accounts and Reserves

(dollar amounts in thousands)

Charged
Balance at (credited) Charged to Balance at
beginning of to costs and other accounts Deductions end of
Description year expenses (a) (b) year

Year ended December 31, 1994:
Doubtful receivables $3,316 1,521 338 (2,344) 2,831
Returns and allowances 862 294 (c) 306 - 1,462
$4,178 1,815 644 (2,344) 4,293

Year ended January 1, 1994:
Doubtful receivables $2,763 2,056 - (1,503) 3,316
Discounts 23 - (c) - (23) 0
Returns and allowances 731 131 (c) - - 862
$3,517 2,187 - (1,526) 4,178

Year ended January 2, 1993:
Doubtful receivables $4,937 3,309 408 (5,891) 2,763
Discounts 23 - (c) - - 23
Returns and allowances 914 (183)(c) - - 731
$5,874 3,126 408 (5,891) 3,517

Notes:
(a) Represents initial reserves of acquired business.
(b) Represents uncollectible receivables written-off, net of recoveries.
(c) Represents net increase (decrease) in required reserve.