Daily News
From Home Furnishing Business
Bassett Furniture Announces Work Force Reductions
November 21,
2024 by Karen Parrish in Business Strategy, Industry 
Bassett Furniture Industries, Inc. announced certain work force reductions designed to both streamline operations and better match the Company’s cost structure to the current rate of business. Through a combination of layoffs and retirements throughout the organization, this workforce reduction will result in approximately $2.5 million in annual savings.
Including this action, Bassett has reduced its headcount by 11% over the past year. The Company expects to record an associated $500,000 severance charge in the current quarter.
The Company further announced that it continues executing on its five-point restructuring plan announced on July 10, 2024, which is projected to provide between $5.5 million and $6.5 million of annual cost savings. Specifically, those points include:
- Drive organic growth through Bassett-branded retail locations, omni-channel capabilities, and enhanced customization positioning to expand dedicated distribution footprint.
- Rationalize US wood manufacturing from two locations into one primary location, supported by a small satellite operation.
- Optimize inventory and drop unproductive lines.
- Improve overall cost structure and invest capital in refurbishment of current retail locations.
- Close the Noa Home e-commerce business.
Coupled with the work force reductions discussed above, annual savings are now projected to be between $8.0 million and $9.0 million.
“The cutback announced today reinforces our commitment to press on with the restructuring plan we announced back in July,” commented 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. Nevertheless, we remain focused on the cost reductions that have been previously communicated.”
“Specifically, we have completed the consolidation of our Virginia based wood production facilities and have seen better performance from the remaining concern the past two months,” continued Spilman.
“Noa Home, our Canada-based e-commerce furniture foray has officially shut down and we are liquidating remaining inventory. We received several new commitments for our Bassett Design Studio concept at the Market and our e-commerce sales have consistently grown the past five months. 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.”