Breaking News

French Planes Carry Out First Strikes on Iraq Islamic State Targets
Tweet TWEET

La-Z-Boy Will Fire 100 Workers as It Closes Plants

La-Z-Boy Inc. (LZB), the maker of American Drew and Kincaid furniture, said it’s firing about 100 workers as it closes plants in a company restructuring.

La-Z-Boy will discontinue wood furniture production at its Hudson, North Carolina, facility in the second quarter of fiscal 2015 as it switches to imported materials, the Monroe, Michigan-based maker of furniture and recliner chairs said today in a statement. It’s also putting its Lea Industries children’s furniture unit and two manufacturing facilities up for sale.

The restructuring will result in a pretax charge of as much as $15 million, the majority of which will be incurred in the fiscal fourth quarter ending this month, the company said.

Other retailers including Family Dollar Stores Inc. (FDO) have cut jobs recently amid restructuring and store closures. La-Z-Boy sales growth slowed in the most recent quarter, rising 3 percent to $350.4 million in the three months ended Jan. 25, compared with a 14 percent gain in the previous quarter.

The shares rose 1.5 percent to $24.98 today at the New York close and have fallen 19 percent this year. The Standard & Poor’s 500 Index has gained 0.8 percent this year.

To contact the reporter on this story: Leslie Patton in Chicago at lpatton5@bloomberg.net

To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net Stephen West, John Lear

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.