By In a strategic move aimed at streamlining its operations, Leggett & Platt, a diversified manufacturer based in Carthage, Missouri, has announced plans to close up to 20 of its bedding products factories. This restructuring plan is primarily focused on the company’s bedding products segment, but will also have some impact on its furniture, flooring, and textile products segment.
According to CEO Mitch Dolloff, the bedding market has undergone “unprecedented change” in recent years, prompting the need for this consolidation effort. As part of the plan, Leggett & Platt will reduce its manufacturing and distribution footprint in the bedding products segment from 50 facilities to a more streamlined 30 to 35 facilities. Additionally, it will consolidate a small number of production facilities in its home furniture and flooring products segment to align capacity with demand.
To facilitate this restructuring, the company anticipates incurring restructuring and related costs amounting to $65 million to $85 million, with half of this expense expected to be incurred within this year. Furthermore, Leggett & Platt has stated that it will withdraw its previously stated financial targets, including revenue growth, in light of these changes.
The company also expects to face a fourth-quarter impairment charge of $450 million due to weaker demand and shifting market dynamics which have disrupted some of its customers.
While these decisions are undoubtedly challenging, Leggett & Platt is confident that they are necessary steps to adapt to the evolving landscape of the bedding market. By consolidating its operations and optimizing capacity, the company aims to enhance efficiency and maintain its competitive edge.
For any further inquiries or information, please contact Leggett & Platt directly.
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