Flexsteel's struggling continues, lays off 109 and shuts down furniture plant
June 20, 2019 | 11:32 am CDT
HARRISON, Ark. - Flexsteel Industries, the fifth largest residential furniture maker in the U.S. and number 24 on the FDMC 300, has announced another shutdown - this time a manufacturing plant in Harrison, Arkansas. 109 employees will lose their jobs.
The loss of the plant is a big hit for Harrison, which is a small, manufacturing town, said city officials. The plant will be closing on August 20, around 60 days from when the employees were notified.
The closure is part of a major restructing effort from Flexsteel, who appears to be struggling. The company closed a Riverside, California manufacturing plant last month - exiting the commercial and hospitality furniture business and laying off 130. The restructuring also means job cuts at its main manufacturing location in Dubuque, Iowa, despite it receiving millions of dollars in tax incentives to build a new facility there.
The plan includes "right-sizing", which aims to save $32 million in employee-related costs and increasing efficiencies. The company suffered a $15 million loss last quarter in sales.
Flexsteel's main manufacturing location is in Dubuque, with five other plants throughout the United States and Mexico before the closure. Its sales were an estimated $469 million in 2017. Flexsteel employed around 1,400 workers before the closure.
Flexsteel was big news on Woodworking Network late 2016 after it announced it would abandon its manufacturing presence in Iowa, with plans to close its main plant and lay off 200 workers. Soon after however, the state of Iowa stepped in, offering the company a $10 million incentive package to stay. Flexsteel chose to remain in Iowa. It's unclear if that plan is still in action. Former CEO Karel Czanderna also resigned abruptly in September 2018.
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