Monday update: Read the full story.
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Furniture Brands International officials today defended the company’s decision to award more than $10 million in incentive bonuses to its top executives in 2008 while the company’s stock and earnings were suffering.
We spoke with company spokesman John Hastings and Furniture Brands CEO Ralph Scozzafava about the bonuses and the company’s plans for its Northeast Mississippi operations. Read more in tomorrow’s paper.
the plant on South Green Street
The Day-Brite Group on South Green Street laid off 45 employees Friday. Scott Williams, the company’s human resource director, today confirmed the news.
He said the layoffs were effective at the end of the shift Friday. He cited a slowdown in business for the decision. Read tomorrow’s Daily Journal for more info.
An excerpt (full story) from today’s Daily Journal:
JACKSON – The House, without a dissenting vote, passed legislation Tuesday aimed at saving jobs in the ailing furniture industry.
The measure would provide a tax break to furniture manufacturers. Its approval came on the final day for the chamber to take it up.
On Monday, House Ways and Means Chairman Percy Watson, D-Hattiesburg, and Speaker Billy McCoy, D-Rienzi, would not commit to taking up the legislation even after meeting with representatives of the Mississippi Furniture Association.
But on Tuesday, the House passed the legislation, although it made changes in the bill to ensure that it will end up in conference. There, key House and Senate members will continue to work on the proposal.
McCoy said he wanted to ensure the legislation fulfills its stated intent of saving and possibly creating jobs in Northeast Mississippi’s hard-hit furniture industry.
“This is not to give a tax break to an industry. We want this bill to do good for the overall state economy and to save and create jobs,” McCoy said. “We want to save what we have and create more.”
This just in from the governor’s office:
GOVERNOR BARBOUR ANNOUNCES 125 NEW JOBS IN BRUCE FURNITURE FACILITY
Jackson, Mississippi – Governor Haley Barbour announced today United Chair, owned by Haworth Inc., will add at least 125 new jobs at its Bruce, Miss., facility. The company’s Bruce plant currently employs approximately 180 people.
“This is great news for the state of Mississippi, especially during these tough economic times,” Governor Barbour said. “We are delighted that Haworth is increasing its operations at the Bruce facility and will be creating at least 125 new jobs there. This consolidation is going to have a very positive impact on Calhoun County and the surrounding area.”
The new jobs at the Bruce facility are the result of a consolidation in North American operations for Haworth. The new jobs at the Bruce plant will have an average wage rate of $13.44 per hour.
Continue reading ‘Furniture plant in Bruce to add jobs’
The Biz has been walking the halls of the winter Tupelo Furniture Market this week and last, talking with buyers and exhibitors. Some say they had a good market. Others say they didn’t. Read tomorrow’s Daily Journal for the full story.
And because of the inclement weather in the area today, TFM officials have cleared exhibitors to break down their booths early. They were allowed to start at noon today instead of 5 p.m. And, it’s interesting to note that many vendors were hanging around today hoping to get local people who wanted to buy their floor samples. Officially, you have to have a nametag to get it. But, if you want to go today and buy samples, I would venture to say you could get in without credentials and find a deal. But you didn’t hear that from us.
In case you’ve missed our TFM coverage in the pages of the Journal, here you are:
• TUPELO FURNITURE MARKET: ‘It’s going to be very scary’
• Restaurants, hotels say they are prepared for the furniture market
From Furniture Today (full story) about Verona-based Style Line:
TUPELO, Miss. — Billy Wayne Anderson, who founded upholstery manufacturer Style Line Furniture with his wife, Margie, died at his home last week after a lengthy illness. He was 74.
Like many in the upholstery business here, the Andersons founded the company in 1969 in a small, makeshift building and built it into a major business with national distribution. Anderson was active in the business until last July when he semi-retired.
The company’s showroom at the Tupelo Furniture Market was closed Saturday during Anderson’s funeral at Lee Memorial Funeral Home Chapel.
News from our sister publication, the Monitor-Herald in Calhoun County. It seems United Chair in Bruce could be adding as many as 250 jobs. That would be great news, considering announcements of more furniture industry jobs are far and few between these days.
Excerpts from the story by Mack Spencer, of the Monitor-Herald:
Plant manager Rick Boring is in Holland, Mich., this week at parent company Haworth Inc.’s headquarters to work out the plans for expansion in Bruce.
Local speculation to this point has led to expectations of as many as 200 to 250 new jobs at the Groupe Lacasse-United Chair plant in Bruce. Until the company’s plans are finalized, the speculation is just that.
Bruce’s gain will be the loss of Allegan, Mich. Haworth Inc. has announced plans to close its Allegan plant, which employs approximately 200. The company is also offering voluntary severance packages to hourly production workers at plants in Holland and Douglas, Mich., according to several Michigan newspapers and television stations.
The company is trying to cut a total 350 jobs at its Michigan plants.
We’re making plans at the Journal for 2009 and want your input. How can we improve Biz Buzz? Some of you have mentioned you want more videos and pictures. What business-related videos and pictures would be interesting to you? Store tours, manager interviews, new construction updates, Dennis’ thoughts about the economy, yada yada. Tell us and we’ll see what we can do.
What type of business-related content do you want? More retail? More Toyota and auto news? More furniture, restaurant, agriculture, tourism or oil/gas news? Are you interested more in Tupelo or in other areas of the region?
Now’s your chance. Tell us what you want from Biz Buzz. We’re listening/reading.
The CDF has announced that a “major” furniture industry announcement will be made tomorrow (Tuesday) morning at 10 a.m. at Lane’s plant in Belden.
No details on the news, however.
11 a.m. Tuesday update:
Dennis just called in with the news …
U.S. Foreign-Trade Zones Board approved FTZ manufacturing authority for Lane, H.M. Richards and Bauhaus USA. This approval will not only enable these companies to maintain their in-house cut-and-sew operations saving an estimated 950 jobs in Lee County, but will also reduce the raw goods cost of each company by over $1 million dollars annually.
He’ll be back to explain this in greater detail soon. Good news for Northeast Mississippi and Lee County.
Todd Vinyard
Online Editor
Wednesday update: Here’s the story from today’s paper.
Furniture Brands is the parent company for Lane. Excerpts from Furniture Today (full story):
ST. LOUIS — Citing a soft retail market, Furniture Brands International said today that it is eliminating about 1,400 management, professional and hourly positions, or about 15% of its domestic workforce.
“These reductions are an inevitable response to the recessionary environment and are necessary to strengthen Furniture Brands for the future,” said Ralph P. Scozzafava, chairman and CEO.
“By aligning our costs with anticipated lower sales volumes, we are positioning the company for 2009 and beyond. With the eventual return of historical consumer spending patterns, Furniture Brands will be well positioned to leverage our more efficient cost base into improved profitability,” he said.
The elimination of direct production positions matches anticipated lower sales volumes stemming from soft market conditions and is expected to lessen the company’s exposure to factory down days, the company said. Through the first nine months of 2008, factory down day costs totaled $14 million.
“Our efforts at delivering value for Furniture Brands’ shareholders go beyond cost reductions,” Scozzafava said. “Our new product introductions and consumer testing initiatives are leading the industry, and retailers are seeing the value that this process delivers. We are also targeting a greater portion of our consolidated advertising budget to working media in order to maximize the power of our brand portfolio. These programs are in addition to established operational efficiency initiatives such as the Pacemaker plant consolidation at Broyhill, the near completion of a centralized shared services organization, and the creation of FBN Asia.”
“We remain focused on managing our strong balance sheet during this challenging period. As a result of our stringent efforts to manage cash, we are able to allocate resources between those strategic plan initiatives, capital spending projects, and debt repayment opportunities that provide the greatest benefit,” Scozzafava added.
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