Industry sheds facilities, 1,600+ factory jobs in year of soft demand


HIGH POINT – A wave of factory shutdowns across the , mattress and sector is signaling sustained pressure on the industry as companies contend with soft demand, overcapacity and ongoing efforts to streamline operations.

Since June 2024, the industry has seen at least a dozen players either shutter facilities or announce plans to do so this year. More than 1,600 employees have been impacted as companies wind down targeted facilities.

Reviewing publicly available notices under the federal Worker Adjustment and Retraining Notifications (WARN) filed over the past 12 months reveals a tumultuous time across the home furnishings and mattress category.

While most of the closures are related to the mattress category, the furniture and textiles sides of the business haven’t been spared. The list reads like a who’s who in the industry with Serta Simmons Bedding, Corsicana Mattress Co., Resident Home, A. Lava & Son, and Hooker Furniture having all closed, or announced plans to close, facilities.

These moves follow a similar pattern seen in 2024 when , and Culp Inc. all took steps to consolidate or scale back production footprints, citing ongoing, persistent macroeconomic challenges and shifting consumer behavior.

Leggett & Platt announced a massive restructuring in early 2024 with plans to close up to 20 facilities, while Culp set into motion its plans to close its Canadian operation in Quebec and consolidate two factories in Haiti. Purple’s restructuring consolidated three factories into its 850,000-square-foot McDonough, Ga., location late last year impacting 328 employees in Utah.

The supply side closures are unfolding in parallel with consolidation on the retail front. Regional and national home furnishings retailers have seen a flurry of bankruptcies, closings and acquisitions over the past several years, further pressuring suppliers to adjust production capacity.

Executives point to prolonged post-pandemic normalization, consumer confidence and inflation as catalysts for retrenchment. While some closures are part of broader restructuring efforts, others reflect deeper contractions in specific product categories, particularly mattresses, which have faced declining unit sales.

According to the latest data from the International Sleep Products Assn., total mattress market shipments of U.S produced and imported goods in 2024 dropped 8.8% year-over-year to 24.9 million units compared to 27.3 million units in 2023.

The first six months of 2025 have been active with announcements and closings.

As part of a realignment of its facilities, closed its Shelbyville, Tenn., factory last week. According to a filed with the state of Tennessee, the company indicated 47 employees would be impacted.

Serta Simmons Bedding is set to close its 533,000-square-foot Moreno Valley, Calif., factory this summer making it the seventh factory the company has closed since 2022. According to a WARN filing, wind-down operations will begin July 5 and run through Sept. 30, impacting 180 employees. The company said the move is part of its strategy to improve efficiency across its manufacturing footprint.

Ashley Furniture closed the 300,000-square-foot Resident Home factory in Jeffersonville, Ind., laying off 106 workers a year after the home furnishings brand acquired the mattress brand. Ashley officials at the time said the production would be consolidated into other Ashley factories.

In its consolidation strategy, Hooker Furniture said in March that it would close its warehouse outside of Savannah, Ga. The closure is set for this month, and the company has opened a warehouse in Vietnam designed to help reduce lead times. The Georgia facility opened in 2021 as an 800,000-square-foot operation to house the former Accentrics Home line, which closed in 2023.

Greensboro, N.C.-based Unifi, a global textile manufacturer, announced in February plans to close its Madison, N.C., factory this month. Another fiber and yarn spinner announced is closing its facility in Kings Mountain, N.C., at the end of the year. The layoffs at Patrick Yarn Mill, a maker of flame-retardant yarns acquired in 2017 by U.K.-based industrial thread manufacturer Coats, started last month and will continue through Dec. 31, according to a WARN notice with the state.

In April, fabric supplier Richloom Corp. closed its High Point-based Richloom Weaving, citing home furnishings retail bankruptcies such as , Badcock Furniture and Joann Stores. Fifty-four employees were affected by the closure. In Plant City, Fla., Leggett & Platt closed its facility this spring, impacting 78 employees as part of its overall restructuring announced last year.

A Lava & Son, a former textiles and cover supplier to the mattress segment, went out of business in the fall of 2024 shuttering its Chicago facility and putting 188 out of jobs, according to a WARN notice filed with the state of Illinois.

High-end furniture manufacturer EJ Victor shuttered operations in September 2024 citing damage from Hurricane Helene. The company said its insurance provider declined coverage for the factory damage and inventory loss leaving it with no choice but to close and lay off 122 employees.





Credit to Source link

Leave a Comment