O’Sullivan to close Virginia plant
RTA producer will consolidate into Missouri facility
Larry Thomas -- Furniture Today, July 6, 2006
ROSWELL, Ga. — O’Sullivan Inds., which emerged from Chapter 11 bankruptcy protection in April, has announced it will close its South Boston, Va., factory by the end of the year.
The closing will leave the ready-to-assemble furniture producer with a single factory — a 1.1 million-square-foot facility in Lamar, Mo. Rick Walters, president and CEO, said the Lamar plant will absorb the South Boston production.
“This has been a difficult, but necessary decision for us,” he said. “The closure is a result of industry wide excess capacity and is not a reflection on the work force or management team in South Boston.”
Walters said the plant has consistently met product quality and delivery requirements, but said there also “is an immediate need to improve capacity utilization and optimize overall company performance.”
The South Boston facility has about 200 employees. The company said about 150 jobs would be added in Lamar as a result of the consolidation.
Amid increasing competition from imported wood furniture, reduced demand for its products, and the bankruptcy of several major customers, O’Sullivan’s sales slid from $358.8 million in the fiscal year ended June 30, 2001, to $249.9 million for the year ended June 30, 2005. Sales for the most recent fiscal year are not available.
The company filed for Chapter 11 protection in October 2005 and emerged from bankruptcy in April.
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O'Sullivan closing Virginia plant
Jul 23, 2006
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