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Supplier Unifi moves to cut costs

By Furniture Today Staff -- Furniture Today, March 14, 2004

Greensboro, N.C. — Greensboro, N.C.— Yarn supplier Unifi is closing plants and eliminating 400 positions — 10% of its workforce — in hopes of reducing costs by more than $22 million.

Brian Parke, president and CEO, cited excess capacity in the U.S. market, rising raw materials prices and pressure from imports as factors Unifi must address to return to profitability.

Unifi will close its plant in Altamahaw, N.C., shut down the production of dyed yarn in Manchester, England, and cut jobs at a plant in Ireland and at its headquarters in Greensboro.

"By purchasing some of our raw materials on the open market in our European operations, exiting declining non-core businesses, and consolidating yarn production, Unifi can reduce its fixed costs substantially without material impact to our top-line sales or disruption in service to our customers," Parke said.

Unifi said it will take charges of $24 million to $28 million for the actions, including about $15 million to $18 million in the current quarter ending March 28, and the remainder in the next quarter.

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