SILOAM SPRINGS (KNWA/KFTA) — A local furniture manufacturing facility is temporarily closing because of the COVID-19 crisis.
The La-Z-Boy manufacturing plant in Siloam Springs is temporarily closed at least until April 13.
“The decision for a temporary closure is to ensure the well-being of its employees and their families, its customers and the communities where it operates,” according to a March 29 statement from its corporate office in Monroe, Michigan.
La-Z-Boy Furniture Galleries store in Springdale, which is independently owned and operated, is OPEN.
The furlough impacts about 6,800 employees globally, approximately 70%. Senior management will take a 50% salary reduction, salaried employees a 25% cut, and the board of directors will “forego the cash portion of its compensation until
further notice,” according to a company statement.
LA-Z-BOY COVID-19 ACTION PLAN
- Temporary closure of its U.S. manufacturing facilities, effective immediately, to be re-evaluated on April 13, 2020
- Temporary closure of all company-owned La-Z-Boy Furniture Galleries® stores is in process, with 130 of 155 stores currently closed (this does not include the Springdale location)
- Temporary closure of its Regional Distribution Centers once in-process orders are delivered.
“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,” said La-Z-Boy Chairman, President and Chief Executive Officer Kurt Darrow. “Moving forward, with a strong financial foundation, the powerful La-Z-Boy brand, and our dedicated and hard-working people, I am confident the company will weather this storm.
Although the path forward will likely be complex and unpredictable, we expect to return to full operations when the crisis lifts, and emerge with strength,” Darrow said.
Read the full announcement here.