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La-Z-Boy Announces Moves to Optimize Supply Chain

General News

La-Z-Boy Incorporated (“La-Z-Boy” or the “Company”) announced plans to further strengthen its supply chain manufacturing footprint.  The company will close its Redlands, California upholstery manufacturing facility and move production to available capacity at its other North American facilities.  In addition, the company will transition the leather cut-and-sew operation from its Newton, Mississippi upholstery manufacturing plant to its other North American-based cut-and-sew facility.

The company’s Redlands upholstery plant currently employs about 350 people, accounts for approximately 10% of the La-Z-Boy branded business total upholstery production and manufactures recliners, motion sofas and classics (high-leg recliners).  La-Z-Boy plans to cease production at the Redlands plant in October 2019.  The move of the Newton leather cut-and-sew operation is expected to fully transition by the end of calendar 2019 and will impact about 105 of the 525 employees at that location.

Kurt L. Darrow, Chairman, President and Chief Executive Officer, of La-Z-Boy Incorporated, said: “We regret the impact these actions will have on those employees affected and will provide outplacement assistance during the transition period.  We greatly appreciate the contribution of each employee and thank them for their years of dedicated service. However, after an in-depth review of our supply chain, due to ongoing productivity improvements, we determined these moves will further optimize our operations and strengthen our competitive positioning in the marketplace.”

Darrow continued, “We are committed to ensuring our dealers and their customers continue to receive excellent service, quick and on-time deliveries, and consistent freight costs as we move production to our other facilities.  With 3.7 million square feet of North American manufacturing space for the La-Z-Boy branded product and about 5,000 employees in those facilities, we have the capacity to not only service existing business but expand our volume as we execute various growth strategies.”

The Redlands facility, which is approximately 200,000 square feet, will be idled after operations cease and marketed for sale.

La-Z-Boy expects to incur approximately $5 to $7 million in fiscal 2020 of one-time pre-tax charges related to the transitions, which will be excluded from Non-GAAP results. Beginning in fiscal 2021, the company anticipates ongoing annual operating savings of approximately $4 to $6 million pre-tax.

About La-Z-Boy

La-Z-Boy Incorporated is one of the world’s leading residential furniture producers, marketing furniture for every room of the home. The La-Z-Boy Upholstery segment companies are England and La-Z-Boy. The Casegoods segment consists of three brands: American Drew®, Hammary®, and Kincaid®. The company-owned Retail segment includes 156 of the 353 La-Z-Boy Furniture Galleries® stores.  Joybird is an e-commerce retailer and manufacturer of upholstered furniture. The corporation’s branded distribution network is dedicated to selling La-Z-Boy Incorporated products and brands, and includes 353 stand-alone La-Z-Boy Furniture Galleries® stores and 550 independent Comfort Studio® locations, in addition to in-store gallery programs for the company’s Kincaid and England operating units. Additional information is available at


Kathy Liebmann – – (734) 241-2438

Source: La-Z-Boy Incorporated