Sealy reorganizes business structure

Shifts from three U.S. divisions to two

David Perry -- Furniture Today, October 6, 2008

ARCHDALE, N.C. - Bedding sales leader Sealy is reorganizing its U.S. structure as part of a continuing effort to reduce costs and maintain its competitive position, the company said.

Sealy is restructuring its domestic business from three regions - North, South and West - to two, East and West. And it is eliminating some field and corporate positions as a result of that realignment.

"As the rebound in the domestic economy continues to elude us," Sealy CEO Larry Rogers said, "we feel it prudent to take additional actions that will position Sealy to weather the current economic storm and make a strong recovery when market conditions finally improve."

Rogers released a broad outline of the changes to Furniture/Today. He did not specify how many people will be affected in the restructuring.

Rogers said that the regional reorganization will be effective Oct. 15. The new East region will comprise seven plants: Albany, N.Y.; Medina, Ohio; High Point; Atlanta; Williamsport, Pa.; Batavia, Ill.; and Orlando, Fla. The new West region will comprise nine plants: Richmond and South Gate, Calif.; Denver; Portland, Ore.; Kansas City; Kansas; St. Paul, Minn.; Phoenix; and Brenham and Fort Worth, Texas.

The sales districts will be realigned to those regions. The regional office for the East region will be in Albany and the West region office will remain in Phoenix.

To minimize costs associated with the reorganization, the current management of the West region will continue to manage that region and the current North region management team will manage the new East region, Rogers said.

Sealy employees whose positions are eliminated will be provided with severance benefits and outplacement services, in accordance with Sealy's established policies, Rogers said.

"Decisions involving job reductions are never made lightly at Sealy," he said. "We only make them when we believe they are necessary to help stabilize the company during difficult times. We hope this restructuring will be sufficient to weather the current storm, but nothing is certain in today's economy. That is why it is more important than ever for each of us at Sealy to focus on those things that we can control and continue to make steady progress."