“The speed and depth of the impact COVID-19 is having on businesses such as Flexsteel is unprecedented, painful and has required the Company to make sobering decisions to enable the organization to weather the storm. The Telegraph Herald reports that the company announced the closure Wednesday morning, minutes before a conference call to discuss its latest quarterly earnings.
The Dubuque, IA manufacturing facility employs approximately 200 employees and primarily produces products for recreational vehicle customers. The company announced that sudden drops in demand due to the coronavirus pandemic contributed to the strategic decision to close that sector of its business along with its hospitality division. The other job cuts will impact corporate employees, engineers and support workers in Dubuque. ", Like us on Facebook to see similar stories, 'I don't wish Zeta on anyone': Storm upgraded to hurricane, takes aim at Gulf Coast, A New Website Tracks Broken McFlurry Machines, Because We've All Been Heartbroken Before.
These actions will enable the Company to increase its focus on profitably growing three business platforms where it is advantaged and can create value: (1) home furnishings, (2) e-commerce, and (3) workspace solutions. While the situation continues to evolve daily, the Company will continue to support its workforce with real-time updates to ensure each individual can plan accordingly. This pandemic has been unforgiving to many companies including ours, and we find ourselves with heavy hearts in making these hard decisions as we attempt to navigate these uncharted business conditions.”. Flexsteel officials temporarily shut down the Seippel Road plant on March 27, citing safety concerns and declining demand linked to COVID-19. Flexsteel to close Starkville facility Due to declining customer demand and the current coronavirus pandemic, Flexsteel said it's closing the two facilities in … Flexsteel Industries is closing its Dubuque manufacturing facility. "Over the days ahead, the Company will be working with the workforce, customers, and suppliers to determine a feasible ramp down plan," a press release said. In late March, both manufacturing facilities were temporarily shut down due to sudden drops in demand as many of Flexsteel’s customers shut down in the wake of the pandemic. While Flexsteel soon will leave the Seippel Road facility, the company’s corporate headquarters will remain in the Port of Dubuque. Flexsteel Industries is closing its Dubuque manufacturing facility. The Dubuque-based company said it's exiting the recreational vehicle and hospitality businesses due to declining customer demand and changing market conditions due to the COVID-19 pandemic. The closure will result in the loss of 213 jobs, including about 150 manufacturing positions. Read more from the company’s official announcement below: Consistent with the previously announced comprehensive restructuring plan designed to increase shareholder value and pursue strategies that drive long-term profitable growth, the Company has decided to exit its Recreational Vehicle and remaining Hospitality businesses. We have recently added to our talented team with the appointment of Derek Schmidt to Chief Financial and Chief Operating Officer. The furniture manufacturing plant Flexsteel will close its doors on August 20.
"While it is anticipated that both facilities could close as early as June, the date may fluctuate sooner or later based on business conditions.". If you are employed in the RV industry and not “While no one can anticipate the ultimate severity and length of the pandemic, we took immediate precautions as outlined by the CDC to protect our employees and customers. a member of the trade media, Daily business news on the RV industry and the companies and people that encompass it, Monthly printed and/or digital magazine filled with in-depth articles to increase profit margins, Statistics, data and other RV business trade information. 1 for the Operator), RV News magazine720-353-4003[email protected]. The closure will result in the loss of 213 jobs, including about 150 manufacturing positions. Microsoft may earn an Affiliate Commission if you purchase something through recommended links in this article. The Dubuque plant employs about 150 people. Wisconsin surpasses 200K confirmed cases of COVID-19; 7-day positivity rate remains above 25%, Police seize loaded handgun with extended magazine; man crashes stolen vehicle into ditch, Police arrest 2 teens who allegedly tried breaking into Bassett Food Mart, Police arrest woman who pointed gun at man who allegedly damaged her vehicle, DNR wants to raise mining fees, require more detailed plans, Woman arrested following cellphone theft at West Towne Mall, 3 men involved in theft still on the loose, Sentencing For Occupants Of Vehicle With Drugs in Cuba City, Cash, cigarettes stolen during burglary at Madison gas station, Trump, Pence both coming to Wisconsin this week, Second Lady Karen Pence to campaign in Waterloo on Wednesday, Forward Madison FC searching for new head coach, Baraboo man arrested on suspicion of 4th-offense OWI, drug charge, Organizer: Not enough signatures for Evers recall effort, HARIBO to start construction on Pleasant Prairie production facility this year.
In 2016, Flexsteel announced they soon would close their manufacturing facility on Jackson Street and emphasized that they would explore alternative options outside of Dubuque. We also took swift action to mitigate our operational and financial risk by reducing costs commensurate with current demand.”, “Regardless of the disruption across our industry and nation, we have reason to look ahead optimistically.
Flexsteel to permanently close Dubuque manufacturing facility DUBUQUE, Iowa (KCRG) - Flexsteel Industries, Inc. said it will be permanently closing its Dubuque manufacturing facility. Flexsteel manufacturing facilities in Dubuque, IA and Starkville, MS also closed as part of the transition. Copyright 2019 DRN Media Inc.All rights reserved.
“By exiting the Recreational Vehicle and Hospitality businesses, we will sharpen our organizational focus on growing those business platforms that strategically fit with our core competencies and have the greatest potential for long-term profitable growth. The company announced that sudden drops in demand due to the coronavirus pandemic contributed to the strategic decision to close that sector of its business along with its hospitality division.
Rather than hunkering down during the crisis, we are planning to accelerate our business transformation by pushing out the boundaries of opportunity while streamlining our operations and footprint,” Dittmer added. While it is anticipated that both facilities could close as early as June, the date may fluctuate sooner or later based on business conditions. The Starkville, MS manufacturing facility employs approximately 170 employees and produces products for both recreational vehicle and hospitality customers. As a result of these unprecedented conditions, the Company has made a painful decision to permanently close its manufacturing facilities located in Dubuque, IA and Starkville, MS. Jerry Dittmer, Flexsteel President & CEO, told KCRG News in Cedar Rapids that the company recently opted for the more long-term solution to its current financial situation. “It has become clear that what was thought to be a short-term hit to these two already challenged businesses will now extend well into the future and will likely not return to pre-pandemic levels for some time,” Dittmer said. Based on rapidly declining demand and changing market conditions driven by the coronavirus pandemic, it was determined that these businesses are no longer a strategic fit and will not provide an attractive return on investment for shareholders. Within home furnishings and workspace, we are tailoring our product assortment to become more relevant to the market while simplifying our operations and improving our customers’ experience. Flexsteel to permanently close Dubuque manufacturing facility. “Third-quarter net sales and profits fell short of our expectations as the impact of the 25% tariff continued to dampen demand and COVID-19 regulations closed the retail stores of many customers beginning in mid-March,” said Jerry Dittmer, President and CEO of Flexsteel Industries. The project was supported by more than $10 million in incentives from local and state entities.
“These decisions were extremely difficult and in no way reflect the dedication or performance of our employees at the Dubuque and Starkville manufacturing facilities. The company said it will still be based out of Dubuque. The one thing we know is that the organization will look different coming out of the pandemic than when it entered,” says Dittmer.
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