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La-Z-Boy closes manufacturing, distribution, retail stores

(WTOK)
Published: Mar. 30, 2020 at 12:14 PM CDT
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La-Z-Boy has temporarily closed its U.S. manufacturing facilities, effective immediately, to be re-evaluated on April 13, 2020. This does affect its Newton operation.

The temporary closure of all company-owned La-Z-Boy Furniture Galleries® stores is in process, with 130 of 155 stores currently closed.

Regional distribution centers will also temporarily close once in-process orders are delivered.

The company says the action is in response to the COVID-19 crisis.

In a news release, La-Z-Boy said it's taking the actions based on its on-going assessment of the accelerating spread of the coronavirus and to ensure the well-being of its employees and their families, its customers and the communities where it operates.

The temporary closures mean the furlough of approximately 6,800 employees, or approximately 70%, of La-Z-Boy's global workforce.

La-Z-Boy says customers may still place orders at La-Z-Boy.com and Joybird.com, and orders will be delivered when operations resume.

La-Z-Boy also said its enacting a salary reduction of 50% for senior management and 25% for salaried employees until further notice; additionally, the board of directors will forego the cash portion of its compensation until further notice; a freeze of the company’s 401(k) match; elimination of all non-essential operating expenses and capital expenditures; elimination of the June quarterly dividend and termination of the share repurchase program indefinitely to prioritize near-term financial flexibility.