September 11 attacks, imports blamed for La-Z-Boy plant closures
The Chilhowie facility of the company’s American of Martinsville (AOM) hospitality furniture plant in Virginia will close by mid June with the loss of approximately 245 jobs. Production will be shifted to AOM’s remaining plant in Martinsville, Virginia, where approximately 75 new jobs will be added to handle the extra volume. Operations at the company’s office furniture plant at Granite Falls, South Carolina, will close by July with the loss of 82 jobs.
La-Z-Boy president and CEO Jerry Kiser said: "Business in the US lodging (hotel) industry – AOM’s major customer base – declined precipitously following the terrorist attacks of September 11. While we have seen some indications of stabilisation in the lodging industry, an increasing proportion of the business is moving to offshore sourcing. When business conditions recover, AOM is well positioned as the market leader and will quickly return to historical profitability levels."
