Bassett Furniture reduces workforce by 40

Bassett Furniture has announced a series of layoffs and retirements in a bid to better match its cost structure to the current rate of business, the home furniture manufacturer and retailer said in a news release Wednesday.

This round of reductions, which included layoffs, early retirements and attrition, impacted 40 workers. Since the start of the year, Bassett has reduced its workforce down to around 1,250 workers from 1,400, an 11% reduction.

The workforce reduction is inline with its restructuring plan announced last July. Initially projected to save the company between $5.5 million and $6.5 million annually, these layoffs will now allow for savings between $8 million and $9 million, Bassett said. The company expects to record a $500,000 severance charge in the current quarter.

“The cutback announced today reinforces our commitment to press on with the restructuring plan we announced back in July,” Bassett CEO Rob Spilman said in a statement. “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.”

The restructuring plan has five points:

• Drive organic growth through Bassett-branded retail locations, omnichannel capabilities and enhanced customization positioning to expand dedicated distribution footprint.
• Rationalize U.S. 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.

“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,” Spilman continued. “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 [High Point] 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.”

Bassett has struggled to remain profitable as of late, having reported losses for the past five quarters.