La-Z-Boy to cease U.S. casegoods production

Hudson workers to be laid off
Apr. 18, 2014 @ 03:49 PM

La-Z-Boy Inc. will stop producing furniture at its Kincaid Furniture plant in Hudson this fall, the company announced this week.

But the company is not exiting Hudson entirely because it will close two warehouse and repair facilities in North Wilkesboro by the end of 2014 and move that work to Hudson, a La-Z-Boy press release said.

Together, the two moves will result in 100 layoffs. The company didn't provide a breakdown of the layoffs or say how many jobs will be left in Hudson.

La-Z-Boy is stopping all domestic production of wood furniture, turning to importing all of its wood furniture, and intends to sell its youth-furniture business as part of a restructuring of its casegoods business, Chief Executive Kurt L. Darrow said.

“We have implemented many changes to our casegoods manufacturing model over the past few years to be more competitive. However, in the final analysis, we determined we cannot generate enough domestic volume to support the size facility we operate in North Carolina and believe this move will strengthen our positioning and performance in the segment,” Darrow said.

By the end of this year, the wood-working equipment from the Hudson plant plus the two North Wilkesboro facilities, which together are approximately 520,000 square feet, will be up for sale, Darrow said.

The Hudson plant handles bedroom furniture for the Kincaid and American Drew Lines, which combined account for about 12 percent of the company's wood-furniture business, the company said. Those lines will be transitioned to all-imported furniture.

The company also will exit the hospitality-furniture business as that furniture is also manufactured at the Hudson facility, its press release said.