La-Z-Boy Will Fire 100 Workers as It Closes PlantsLeslie Patton
La-Z-Boy Inc., 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. 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.