La-Z-Boy to close four plants, lay off 645 workers.Monroe, MI-based La-Z-Boy recently announced it would close four manufacturing facilities due to its first quarter loss and to bolster its global market position. During the third quarter, Pennsylvania House in Lewisburg, PA, and a dining room chair assembly plant in White Deer, PA, will close. Pennsylvania House's warehouses for the Lewisburg facility will close afterward to minimize disruption in customer service, La-Z-Boy said. Closure of the two facilities will result in the loss of about 425 jobs, which represent about 15.4% of the case goods group's current employee base. Some work frolic the two plants will be relocated to other facilities or outsourced, La-Z-Boy said. In addition to the Pennsylvania closures, a Kincaid wood furniture plant in Hudson, NC, will shut down in mid-September. The Hudson closure will lay off about 120 employees. La-Z-Boy's upholstery group also will lose a manufacturing facility in Booneville, MS, resulting in a loss of approximately 100 jobs. La-Z-Boy reported a first quarter net loss of $3.52 million. The company's 1Q earnings include a non cash charge of $10.4 million, or 12 cents a share, for the restructuring. For the full year, La-Z-Boy expects the restructuring charges to total $13 million before taxes, or 16 cents a share after taxes. For more information La-Z-Boy's first quarter report, visit www.lazboy.com. |
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