BASSETT, Va.BASSETT, Va. — Bassett Furniture Industries, Inc. Bassett Furniture Industries Inc. plans to reduce its work force to "streamline operations and better match the company’s cost structure to the current rate of business."

The company said that the workforce reduction will result in approximately in annual savings through a combination of layoffs and retirements throughout the organization. Including this action, Bassett has reduced its head count by 11% over the past year. The company expects to record an associated severance charge in the current quarter.

The company also reported that it continues executing on its five-point restructuring plan announced on on July 10, 2024, which is projected to provide between $5.5 million and $6.5 million of annual cost savings. 

Specifically, those points include:

• Drive organic growth through Bassett-branded retail locations, omni-channel capabilities, and enhanced customization positioning to expand dedicated distribution footprint.
• Rationalize US wood manufacturing from two locations into one primary location, supported by a small satellite operation.
• Optimize inventory and drop unproductive lines.
• Improve overall cost structure and invest capital in refurbishment of current retail locations.
• Close the Noa Home e-commerce business.

Coupled with the workforce reductions, annual savings are now projected to be between $8.0 million and $9.0 million.

“The cutback announced today reinforces our commitment to press on with the restructuring plan we announced back in July,” said Rob SpilmanRob Spilman, chairman and CEO. “These decisions were quite difficult as several long-time associates were involved. While we have not seen a measurable uptick in orders, the actions that we have already taken have begun to yield better results. We were pleased with the reception that our new products received at the Fall High Point Furniture Market and look forward to those items hitting retail floors in early 2025. Nevertheless, we remain focused on the cost reductions that have been previously communicated.”

“Specifically, we have completed the consolidation of ourVirginia based wood production facilities and have seen better performance from the remaining concern the past two months,” continued Spilman. “Noa Home, our Canada-based e-commerce furniture foray has officially shut down and we are liquidating remaining inventory. We received several new commitments for our concept at the Market and our e-commerce sales have consistently grown the past five months. We head into fiscal 2025 with our strong balance sheet intact and resolved to improve our financial results no matter what the overall economy presents.”