La-Z-Boy to close Va. plant, convert N.C. unit to warehouse
By Powell Slaughter -- Furniture Today, April 14, 2002
MONROE, Mich. — La-Z-Boy will close the Chilhowie, Va., plant of its American of Martinsville contract furniture subsidiary and convert AOM's Granite Falls, N.C., plant to a warehousing operation for La-Z-Boy's Hammary subsidiary.
The Chilhowie plant mostly produced case goods for the hospitality industry, which suffered in the wake of the Sept. 11 attacks, said La-Z-Boy's president and chief executive officer, Jerry Kiser.
"While we have seen some recent indications of stabilization in the lodging industry, an increasing portion of the existing business is moving to offshore sourcing," Kiser said.
Around 245 employees will lose their jobs when the plant closes in mid-June. Production will shift to AOM's remaining plant in Martinsville, which will add about 75 jobs.
Production at Granite Falls, which has been making product, mostly entertainment centers, for Hammary, will phase out by July and shift to other La-Z-Boy case goods plants. La-Z-Boy will convert the plant into an expanded warehouse facility for Hammary, which now imports most of its product.
The moves reduce La-Z-Boy's domestic case goods production space by 16%, or around 750,000 square feet. In the past 12 months, the company has reduced domestic case goods plant space by about 2.8 million square feet, or around 45%.
"We strongly believe this brings our domestic facilities in line with current business trends, and do not foresee any further case goods restructuring in any near-term time frame," Kiser said.
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