La-Z-Boy Chairman, President and CEO Kurt Darrow said that the Lea youth business is "not a strategic fit from a size perspective in terms of its revenue or earnings, and we believe our efforts would be enhanced by focusing our resources on the core case goods product lines, which include bedroom, dining room and occasional pieces, positioned in the mid to upper-mid price points of the market."
Darrow said the company will continue to service its existing Lea dealers until it finds a new owner for the youth business.
The company will also consolidate its warehouse and repair operations from two North Wilkesboro, N.C., facilities to Hudson.
These facilities, which total about 520,000 square feet, will be idled at the end of 2014 and will be marketed for sale along with woodworking equipment in Hudson.
said the move to an all-import case goods model is aimed at making the company more competitive.
said the company determined that it cannot generate enough domestic volume to support the size facility it operates in Hudson and that the move is expected to "strengthen our positioning and performance in the segment.
With strong manufacturing partners and a global supply chain team on the ground in Asia managing quality and logistics, we will seamlessly transition our remaining domestic bedroom product offerings.
We remain firmly committed to ensuring our dealers and their customers continue to receive the excellent service they have come to expect and depend on from La-Z-Boy Inc
said the move will not affect Kincaid's upholstery program and that it will honor all existing orders in its current backlog.
said that despite the changes, case goods represents an "integral component of our total product offering to the consumer.