Bassett Furniture Announces Workforce Reductions and Progress on Restructuring Plan
Furniture World News Desk on
11/19/2024
Bassett Furniture Industries, Inc. announced workforce reductions as part of its ongoing restructuring plan, resulting in an estimated $2.5 million in annual savings. The reductions, achieved through layoffs and retirements, represent an 11% decrease in headcount over the past year. The company will record a $500,000 severance charge in the current quarter.
The workforce changes are part of Bassett’s five-point restructuring plan, first announced on July 10, 2024, aimed at achieving between $5.5 million and $6.5 million in annual cost savings. With the additional savings from workforce reductions, the total projected savings now range from $8.0 million to $9.0 million annually.
Restructuring Plan Updates
The restructuring plan focuses on several initiatives:
- Organic Growth: Expanding Bassett-branded retail locations, enhancing omni-channel capabilities, and leveraging customization to grow its dedicated distribution footprint.
- Manufacturing Consolidation: Combining two U.S. wood manufacturing facilities into a single primary location with support from a smaller satellite operation.
- Inventory Optimization: Eliminating unproductive product lines.
- Cost Structure Improvements: Investing in the refurbishment of existing retail locations.
- Noa Home Closure: Shutting down the Canada-based e-commerce business.
“The cutback announced today reinforces our commitment to press on with the restructuring plan we announced back in July,” said Rob Spilman, Chairman and CEO. “These decisions were quite difficult as several long-time associates were involved. While we have not seen a measurable uptick in orders, the actions that we have already taken have begun to yield better results. We were pleased with the reception that our new products received at the Fall High Point Furniture Market and look forward to those items hitting retail floors in early 2025.”
Spilman added that the consolidation of the company’s Virginia-based wood production facilities has been completed, with improved performance noted in recent months. The closure of Noa Home is underway, with liquidation of remaining inventory in progress.
Bassett also reported growth in its e-commerce sales over the past five months and secured commitments for its Bassett Design Studio concept during the High Point Market.
“We head into fiscal 2025 with our strong balance sheet intact and resolved to improve our financial results no matter what the overall economy presents,” Spilman stated.
About Bassett Furniture Industries, Inc.
Bassett Furniture Industries, Inc. (NASDAQ: BSET) is a leading manufacturer and marketer of high-quality home furnishings. With 87 company- and licensee-owned stores at the time of this release, Bassett has leveraged its strong brand name in furniture into a network of corporate and licensed stores that focus on providing consumers with a friendly environment for buying furniture and accessories. Bassett’s retail strategy includes stylish, custom-built furniture that features the latest on-trend furniture styles, free in-home design visits, and coordinated decorating accessories. Bassett also has a traditional wholesale business with more than 700 accounts on the open market, across the United States and internationally. For more information, visit the Company’s website at bassettfurniture.com.