In early 1924, Thomas B. Stanley resigned from his position at Basset Furniture in order to start his own company, Stanley Furniture. He founded the company in his home county of Henry County, Virginia and brought on his nephew, Fred A. Stanley, and his brother, John W. Stanley, as some of the company's first employees. While building the first Stanley Furniture factory, Stanley decided to build a company town along with it. With that plan, Stanleytown, Virginia was developed. Over 100 homes were built to house the new factory's workers, and new roadways were paved. Rent for the new homes was $4-$5 per month.