Flexsteel to permanently close Dubuque manufacturing facility - KCRG

DUBUQUE, Iowa (KCRG) - Flexsteel Industries, Inc. said it will be permanently closing its Dubuque manufacturing facility.

The Dubuque-based company said it's exiting the recreational vehicle and hospitality businesses due to declining customer demand and changing market conditions due to the COVID-19 pandemic.

The facility temporarily closed in March due to drops in demand from the pandemic.

The Dubuque facility employs about 200 people.

"Over the days ahead, the Company will be working with the workforce, customers, and suppliers to determine a feasible ramp down plan," a press release said. "While it is anticipated that both facilities could close as early as June, the date may fluctuate sooner or later based on business conditions."

It's also closing a manufacturing facility in Starkville, Missouri, which employs about 170 people.

The company said it will still be based out of Dubuque.

The full release is below:

"Flexsteel Industries, Inc. has decided to exit its Recreational Vehicle and Hospitality businesses due to rapidly declining customer demand and changing market conditions resulting from the ongoing COVID-19 pandemic. Prior to the current crisis, the markets the Company serves in these businesses had already entered a cyclical decline that has now been dramatically accelerated due to the economic disaster created by the pandemic. As a result of these unprecedented conditions, the Company has made a painful decision to permanently close its manufacturing facilities located in Dubuque, IA and Starkville, MS.

In late March, both manufacturing facilities were temporarily shut down due to sudden drops in demand as many of Flexsteel’s customers shut down in the wake of the pandemic. “It has become clear that what was thought to be a short-term hit to these two already challenged businesses will now extend well into the future and will likely not return to pre-pandemic levels for some time,” states Jerry Dittmer, Flexsteel President & CEO. “These decisions were extremely difficult and in no way reflect the dedication or performance of our employees at the Dubuque and Starkville manufacturing facilities. This pandemic has been unforgiving to many companies including ours, and we find ourselves with heavy hearts in making these hard decisions as we attempt to navigate these uncharted business conditions.”

The Dubuque, IA manufacturing facility employs approximately 200 employees and primarily produces products for recreational vehicle customers. The Starkville, MS manufacturing facility employs approximately 170 employees and produces products for both recreational vehicle and hospitality customers. The Company recognizes these changes will have a significant impact on employees and their families and will support those impacted by providing information on how to apply for the enhanced financial benefits provided by the CARES Act to aide in transition.

Over the days ahead, the Company will be working with the workforce, customers, and suppliers to determine a feasible ramp down plan. While it is anticipated that both facilities could close as early as June, the date may fluctuate sooner or later based on business conditions.

“The speed and depth of the impact COVID-19 is having on businesses such as Flexsteel is unprecedented, painful and has required the Company to make sobering decisions to enable the organization to weather the storm. The one thing we know is that the organization will look different coming out of the pandemic than when it entered,” says Dittmer. While the situation continues to evolve daily, the Company will continue to support its workforce with real-time updates to ensure each individual can plan accordingly.

These actions will enable the Company, which will continue to be headquartered out of Dubuque, IA, to increase its focus on profitably growing three business platforms that can create value to customers and shareholders: (1) home furnishings, (2) e-commerce, and (3) workspace solutions."

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Flexsteel to permanently close Dubuque manufacturing facility - KCRG
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