Bassett Announces Additional Cost Structure Reductions and Updates Progress on Restructuring Plan
Bassett Furniture Industries (NASDAQ: BSET) announced workforce reductions expected to generate $2.5 million in annual savings, with an 11% headcount reduction over the past year. The company will record a $500,000 severance charge this quarter. Combined with their previously announced five-point restructuring plan, total annual savings are projected between $8.0-9.0 million. The plan includes consolidating wood manufacturing facilities, closing Noa Home e-commerce business, and optimizing inventory. Despite no significant increase in orders, the company reports improved performance in wood production and growing e-commerce sales over the past five months.
Bassett Furniture Industries (NASDAQ: BSET) ha annunciato riduzioni della forza lavoro che si prevede genereranno $2,5 milioni di risparmi annui, con una riduzione dell'11% del personale nell'ultimo anno. L'azienda registrerà un costo di separazione di $500.000 in questo trimestre. Combinato con il loro piano di ristrutturazione in cinque punti precedentemente annunciato, si prevede che i risparmi annui totali siano compresi tra $8,0-9,0 milioni. Il piano include la consolidazione delle strutture di produzione in legno, la chiusura dell'attività di e-commerce Noa Home e l'ottimizzazione dell'inventario. Nonostante non ci sia stato un incremento significativo degli ordini, l'azienda riporta un miglioramento delle prestazioni nella produzione in legno e una crescita delle vendite e-commerce negli ultimi cinque mesi.
Bassett Furniture Industries (NASDAQ: BSET) anunció reducciones de personal que se espera generen $2.5 millones en ahorros anuales, con una reducción del 11% en el número de empleados durante el último año. La compañía registrará un cargo por despido de $500,000 este trimestre. Combinado con su plan de reestructuración de cinco puntos previamente anunciado, se proyecta que los ahorros anuales totales oscilarán entre $8.0-9.0 millones. El plan incluye la consolidación de las instalaciones de fabricación de madera, el cierre del negocio de comercio electrónico Noa Home y la optimización del inventario. A pesar de no haber un incremento significativo en los pedidos, la empresa informa de un mejor rendimiento en la producción de madera y un crecimiento de las ventas de comercio electrónico durante los últimos cinco meses.
Bassett Furniture Industries (NASDAQ: BSET)는 인력 감축을 발표했으며, 이는 연간 250만 달러의 절감 효과를 가져올 것으로 예상되고, 지난해 동안 직원 수가 11% 감소했습니다. 회사는 이번 분기 동안 50만 달러의 퇴직금 비용을 기록할 예정입니다. 이전에 발표된 5단계 구조 조정 계획과 합쳐서 연간 총 절감액은 800만에서 900만 달러 사이로 예상됩니다. 계획에는 목재 제조 시설 통합, Noa Home 전자상거래 사업 종료, 재고 최적화가 포함되어 있습니다. 주문 수가 크게 증가하지 않았음에도 불구하고, 회사는 나무 생산에서 성과가 개선되었고 지난 5개월 동안 전자상거래 판매가 증가했다고 보고했습니다.
Bassett Furniture Industries (NASDAQ: BSET) a annoncé des réductions d'effectifs censées générer 2,5 millions de dollars d'économies annuelles, avec une réduction de 11 % du personnel au cours de l'année écoulée. L'entreprise enregistrera un coût de licenciement de 500 000 dollars ce trimestre. Combiné avec leur plan de restructuration en cinq points précédemment annoncé, les économies annuelles totales devraient se situer entre 8,0 et 9,0 millions de dollars. Le plan comprend la consolidation des installations de fabrication en bois, la fermeture de l'activité de commerce électronique Noa Home et l'optimisation des stocks. Bien qu'il n'y ait pas eu d'augmentation significative des commandes, l'entreprise rapporte une amélioration de la performance dans la production de bois et une augmentation des ventes en ligne au cours des cinq derniers mois.
Bassett Furniture Industries (NASDAQ: BSET) gab bekannt, dass Stellenabbau erwartet wird, um 2,5 Millionen Dollar jährliche Einsparungen zu generieren, mit einer Reduzierung der Mitarbeiterzahl um 11 % im vergangenen Jahr. Das Unternehmen wird in diesem Quartal einen Abfindungsaufwand von 500.000 Dollar verbuchen. Zusammen mit ihrem zuvor angekündigten fünfpunktigen Restrukturierungsplan werden die Gesamteinsparungen für das Jahr auf zwischen 8,0 und 9,0 Millionen Dollar geschätzt. Der Plan umfasst die Konsolidierung von Holzproduktionsanlagen, die Schließung des E-Commerce-Geschäfts Noa Home und die Optimierung des Bestands. Trotz eines nicht signifikanten Anstiegs der Aufträge berichtet das Unternehmen von einer Verbesserung der Leistung in der Holzproduktion und wachsenden E-Commerce-Umsätzen in den letzten fünf Monaten.
- Expected $2.5 million annual savings from workforce reductions
- Total projected annual savings of $8.0-9.0 million from restructuring plan
- Successful consolidation of wood production facilities with improved performance
- Consistent e-commerce sales growth over past five months
- Strong balance sheet maintained
- 11% workforce reduction over past year
- $500,000 severance charge in current quarter
- No measurable uptick in orders
- Closure of Noa Home e-commerce business
Insights
The announced cost reduction strategy represents a significant operational restructuring, with
The
BASSETT, Va., Nov. 20, 2024 (GLOBE NEWSWIRE) -- Bassett Furniture Industries, Inc. (Nasdaq: BSET) announced today 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
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
- 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
“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.”
About Bassett Furniture Industries, Inc.
Bassett Furniture Industries, Inc. (NASDAQ: BSET) is a leading manufacturer and marketer of high-quality home furnishings. With 87 company- and licensee-owned stores at the time of this release, Bassett has leveraged its strong brand name in furniture into a network of corporate and licensed stores that focus on providing consumers with a friendly environment for buying furniture and accessories. Bassett’s retail strategy includes stylish, custom-built furniture that features the latest on-trend furniture styles, free in-home design visits, and coordinated decorating accessories. Bassett also has a traditional wholesale business with more than 700 accounts on the open market, across the United States and internationally. For more information, visit the Company’s website at bassettfurniture.com.
(BSET-E)
Forward-Looking Statements
Certain of the statements in this release, particularly those preceded by, followed by or including the words “believes,” “plans,” “expects,” “anticipates,” “intends,” “should,” “estimates,” or similar expressions, or those relating to or anticipating financial results or changes in operations for periods beyond the end of the third fiscal quarter of 2024, constitute “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended. For those statements, Bassett claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. In many cases, Bassett cannot predict what factors would cause actual results to differ materially from those indicated in the forward-looking statements. Expectations included in the forward-looking statements are based on preliminary information, as well as certain assumptions which management believes to be reasonable at this time. The following important factors affect Bassett and could cause actual results to differ materially from those indicated in the forward looking statements: the effects of national and global economic or other conditions and future events on the retail demand for home furnishings and the ability of Bassett’s customers and consumers to obtain credit; the success of marketing, logistics, retail and other initiatives; and the economic, competitive, governmental and other factors identified in Bassett’s filings with the Securities and Exchange Commission. Any forward-looking statement that Bassett makes speaks only as of the date of such statement, and Bassett undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Comparisons of results for current and any prior periods are not intended to express any future trends or indication of future performance
Contacts:
J. Michael Daniel
Senior Vice President and
Chief Financial Officer
(276) 629-6614 – Investors
mdaniel@bassettfurniture.com
Peter D. Morrison
Vice President of Communications
(276) 629-6450 – Media
FAQ
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