Interface, Inc. Announces New Restructuring Plan; Announces Reduction of 70 FLOR Employees and Number of Employees in the Commercial Carpet Tile Business
January 06, 2017 at 02:51 am IST
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On December 30, 2016, Interface, Inc. committed to a new restructuring plan in its continuing efforts to improve efficiencies and decrease costs across its worldwide operations, and more closely align its operating structure with its business strategy. The plan involves a substantial restructuring of the FLOR business model that includes closure of its headquarters office and most retail FLOR stores and the write-down of certain underutilized and impaired assets that include information technology assets, and obsolete manufacturing, office and retail store equipment. The company also will relocate FLOR's headquarters from Chicago to the company's headquarters in Atlanta.
The company announced a new restructuring plan that will result in pre-tax restructuring charges in the fourth quarter of 2016 and first quarter of 2017. Many of the changes in the restructuring efforts will be focused on the company's FLOR business model. After careful consideration, the company has decided to exit the specialty retail channel and will eventually close the majority of its FLOR retail stores between January and the end of April 2017. Additionally, the charges will include workforce reductions of approximately 70 FLOR team members and a number of other employees in the commercial business in the Americas and Europe regions, and write-downs of certain underutilized and impaired assets.
Interface, Inc. is a global flooring company. The Company is specializing in carbon neutral carpet tile and resilient flooring, including luxury vinyl tile (LVT), vinyl sheets, and nora rubber flooring. Its segments include Americas (AMS) and Europe, Africa, Asia and Australia (EAAA). The AMS segment includes the United States, Canada and Latin America geographic areas. It markets modular carpet under the brand names Interface and FLOR. It produces carpet tiles in a range of colors, patterns, textures, pile heights and densities. These varieties are designed to meet both the practical and aesthetic needs of commercial interiors. The Company offers a category of products, namely modular resilient flooring, and its product include LVT. It offers rubber flooring products under the noraplan and norament brands, which include in its resilient flooring portfolio. The Company also produces and sells a specially adapted version of carpet tile for the healthcare facilities market.
Interface, Inc. Announces New Restructuring Plan; Announces Reduction of 70 FLOR Employees and Number of Employees in the Commercial Carpet Tile Business