La-Z-Boy Closing Factory
Closing of La-Z-Boy Bauhaus Factory in Mississippi Will Cost 150 Jobs as Work Shifts to Another Plant in the State
December 2008
A La-Z-Boy official confirmed on Thursday that the company is closing its Bauhaus factory in Sherman, Miss., which will eliminate about 150 jobs.
Citing difficult economic conditions, Director of Investor Relations Kathy Liebmann said the decision to close the plant and shift work to the company’s Saltillo, Miss., Bauhaus factory is part of a “right-sizing” designed to more closely match production to demand.
In November, the company announced plans to lay off 850 workers as it announced a net loss of $53.7 million in its second quarter. In addition to trimming about 10 percent of its workforce, the company said it would shut up to 20 dealer-owned stores by early 2009.
According to Mississippi officials, about 1,100 furniture industry layoffs have been announced by factories in the state since the beginning of the year.
Citing difficult economic conditions, Director of Investor Relations Kathy Liebmann said the decision to close the plant and shift work to the company’s Saltillo, Miss., Bauhaus factory is part of a “right-sizing” designed to more closely match production to demand.
In November, the company announced plans to lay off 850 workers as it announced a net loss of $53.7 million in its second quarter. In addition to trimming about 10 percent of its workforce, the company said it would shut up to 20 dealer-owned stores by early 2009.
According to Mississippi officials, about 1,100 furniture industry layoffs have been announced by factories in the state since the beginning of the year.
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