by Restructuring will save an additional $2.5 million per year, for a total of $8 million to $9 million in savings that are part of its 5-point cost-reduction plan announced in July
BASSETT, Va. — Upholstery and case goods manufacturer Bassett Furniture has announced additional layoffs and retirements that are expected to save the company about $2.5 million per year.
Part of an ongoing restructuring plan announced this past summer, the cost-savings initiative includes about 40 layoffs and retirements that are also expected to result in about $500,000 in severance charges in the current quarter.
The company said that with this latest round of reductions, it will have reduced its headcount by 11% over the past year through layoffs and attrition, representing a total of 150 to 160 personnel. This leaves the company with between 1,250 and 1,300 workers.
It also said it continues to implement a five-point restructuring plan also announced in July that includes the following:
+ Driving organic growth through Bassett-branded retail locations, omnichannel capabilities and enhanced customization positioning to expand its dedicated distribution footprint.
+ Consolidating U.S. wood manufacturing from two locations into one primary location in Martinsville, Virginia, supported by a small satellite operation in Bassett.
+ Optimizing inventory and dropping unproductive lines.
+ Improving its overall cost structure and investing capital in refurbishment of current retail locations.
+ Closing its Noa Home e-commerce business.
“The cutback announced today reinforces our commitment to press on with the restructuring plan we announced back in July,” said Rob Spilman, chairman and chief executive officer. “These decisions were quite difficult as several long-time associates were involved. While we have not seen a measurable uptick in orders, the actions that we have already taken have begun to yield better results. We were pleased with the reception that our new products received at the fall High Point Furniture Market and look forward to those items hitting retail floors in early 2025. Nevertheless, we remain focused on the cost reductions that have been previously communicated.”
Spilman added that the company has completed the consolidation of its Bassett and Martinsville wood production facilities, which he noted have seen better performance over the past two months. In addition, he noted, the company has officially shut down its Noa Home, Canada-based e-commerce segment and that the company is liquidating remaining inventory.
“We received several new commitments for our Bassett Design Studio concept at the market, and our e-commerce sales have consistently grown the past five months,” he added. “We head into fiscal 2025 with our strong balance sheet intact and resolved to improve our financial results no matter what the overall economy presents.”
