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Flexsteel’s Restructuring Plan

The initial phase of a restructuring plan by Flexsteel Industries calls for the closure of its’ Riverside, California manufacturing facility. In a press release sent to KDTH, Flexsteel President and CEO Jerry Dittmer says 130 people will be laid off, but no employees at its’ Dubuque facility will be affected. In the release Dittmer says the commercial office and custom-designed hospitality product lines we are exiting represents about 7 percent of the company’s annual revenue and did not align with our strategic direction to focus on profitable core businesses. Flexsteel expects to incur approximately 4 million in one-time cash charges for employee severance and related costs and around 9 million in non-cash charges for inventory impairments due to the restructuring action. The Riverside facility is expected to close within the current quarter, which ends June 30th. The move comes about two weeks after the company reported a quarterly loss of 15.6 million dollars.

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