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On Sunday, Michigan-based La-Z-Boy announced it closed all of its U.S. manufacturing facilities, effective immediately.
That includes the La-Z-Boy Midwest Furniture Factory in Neosho, roughly 75 miles southwest of Springfield.
The southern Missouri factory normally employs some 800 people, the Neosho Daily News reported Sunday night. Like the News-Leader, the Daily News is among 266 USA TODAY Network newsrooms.
La-Z-Boy said it would furlough roughly 6,800 employees in total, representing 70 percent of its workforce.
As of Sunday, the company said 130 of its 155 retail stores were closed temporarily. Regional distribution centers would close “once in-process orders are delivered,” the company said. Customers can order products from the company website, which will be delivered when operations resume, according to a news release.
The News-Leader was not able to reach officials at the Neosho factory or the Springfield store Monday morning. The newspaper also reached out to a New York-based spokesperson but has not yet heard back.
Senior management salaries were cut by 50 percent, salaried employees saw a pay cut of 25 percent, and the company board of directors would skip “the cash portion of its compensation until further notice,” the company said in a news release.
The company said it would freeze its 401(k) match for employees, eliminate “all non-essential operating expenses and capital expenditures” and would not pay a June quarterly dividend to shareholders.
It was not clear whether rank-and-file employees would receive any severance.
La-Z-Boy said it had $200 million in cash and investments on hand and drew $75 million in revolving credit.
Company chairman and CEO Kurt Darrow said in a written statement that the company isn’t aware of any confirmed COVID-19 cases within its ranks.
“While the decisions made were extremely difficult and we deeply regret the impact they will have on those affected and their families, they are deemed necessary as we face one of the most challenging periods in our history,” Darrow said in the statement.
He said La-Z-Boy had a “strong financial foundation” and expects to emerge from the crisis fully operating. The news release said the company would update investors no earlier than late June.
Gregory Holman is the investigative reporter for the News-Leader. Email news tips to [email protected] and consider supporting vital local journalism by subscribing. Learn more by visiting News-Leader.com/subscribe.
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