La-Z-Boy To Restructure Its Casegoods Business

(RTTNews) - La-Z-Boy Inc. (LZB) said Wednesday that it will restructure its casegoods business, which represents about 10% of revenue, by transitioning to an all-import model for its wood furniture.

To accomplish the restructuring, the company will discontinue casegoods production at its Hudson, North Carolina facility during the second quarter of fiscal 2015.

The Hudson, North Carolina facility currently produces bedroom furniture collections for the Kincaid and American Drew lines that account for about 12% of the company's wood furniture business.

The company will also exit the hospitality business as that furniture is also manufactured at the Hudson facility.

In addition, the company will market for sale its youth furniture business, Lea Industries, as it does not align with the company's long-term strategic objectives.

La-Z-Boy will consolidate and transition its warehouse and repair functions from its two North Wilkesboro, North Carolina facilities to Hudson.

As a result of the restructuring, La-Z-Boy said it will take pre-tax charges in the range of $13 million to $15 million, or $0.15 to $0.17 per share after tax, of which about 75% is expected to be non-cash. The majority of the charges will be incurred in the fourth quarter of the company's 2014 fiscal year and the remainder taken in the first half of fiscal 2015.