Thu May 16, 2019
Author: RV News Staff
Flexsteel Industries, Inc. a supplier of furniture to the RV industry, and one of the oldest and largest manufacturers, importers and marketers of residential and contract upholstered and wooden furniture products in the U.S., says it plans an initial restructuring action to increase organizational effectiveness and gain manufacturing efficiencies to position the company for long-term success.
The restructuring includes exiting the commercial cffice and custom-designed hospitality product lines. In addition, the company will immediately close its Riverside, Calif., manufacturing facility. The company expects to complete the wind down of these product lines and the closure of the manufacturing site within the current quarter.
“The commercial office and custom-designed hospitality product lines we are exiting represent approximately 7 percent of our annual revenue and did not align with our strategic direction to focus on profitable core businesses," Flexsteel Industries President and CEO Jerry Dittmer says. “Regarding the facility closure, we are taking advantage of a window to take excess capacity offline within our network, generate cost savings through fixed overhead reduction and position the company to monetize a real estate asset we believe has significant value – all without disruption to our customers.
“We believe these steps are key in our efforts to strategically position our business for future success and to maximize shareholder value," Dittmer says. "As I stated during our April 30th conference call, we are working aggressively to reposition the company and are committed to moving quickly from planning to execution in real time with transparency to all of our stakeholders.”
As a result of the announcements, Flexsteel expects to reduce its workforce by approximately 130 people.