La-Z-Boy Incorporated announced here today a restructuring plan that would include the closures of its Lincolnton, North Carolina and Iuka, Mississippi upholstery manufacturing facilities. It has been confirmed, that it would also include the closure of its rough mill lumber operation in North Wilkesboro, North Carolina, the consolidation of three operations into one at Kincaid’s Taylorsville, North Carolina upholstery operation and the elimination of a number of positions throughout the remainder of the organization.

La-Z-Boy Incorporated is a prominent residential furniture producer, marketing furniture for every room of the home. The La-Z-Boy Upholstery Group companies include Bauhaus, Centurion, England and La-Z-Boy whereas the La-Z-Boy Casegoods Group companies are American Drew, Hammary, Kincaid and Lea. The proprietary distribution network of the corporation is dedicated exclusively for the selling of La-Z-Boy Incorporated products and brands augmenting 340 stand-alone La-Z-Boy Furniture Galleries® stores and 307 La-Z-Boy In-Store Galleries. The La-Z-Boy Furniture Galleries retail network happen to be the largest in North America’s largest single brand furniture retailer, according to industry trade publication In Furniture.

While speaking on the occasion Mr. Kurt L. Darrow, the President and Chief Executive Officer of La-Z-Boy, said, “After careful analysis and much consideration, we made the difficult, but correct decision to close several facilities and reduce our corporate workforce to align our company with the current business environment and strengthen our positioning going forward. We regret the impact these actions will have on the families and lives of those employees affected and greatly appreciate the contribution of each employee and thank them for their years of dedicated service. However, these moves are necessary for our company to remain competitive and we will provide outplacement assistance to these employees during this transition period. Collectively, these actions are expected to save the company $11 million per year when they are fully implemented, and, when coupled with our ongoing process improvement initiatives, will result in increased efficiencies in our remaining manufacturing facilities. Additionally, the overall workforce reduction is a direct result of the strategic moves announced recently to realign our portfolio of companies”.

It is to be noted, that alone in Lincolnton, the company provides work for 250 people accounting for approximately 5% of the La-Z-Boy branded business total upholstery manufacturing capacity fabricating high-leg recliners and occasional chairs. By the next July, 2007 the operations at Lincolnton shall be terminated, with the entire production being shifted to the company’s Newton, Mississippi, Siloam Springs, Arkansas and Dayton, Tennessee facilities.