Home » NEWS » Manufacturing » Furniture company to permanently close Mississippi facility

Furniture company to permanently close Mississippi facility

A furniture manufacturing plant in Mississippi, open since 1985, is headed for closure.

In a news release Wednesday, Flexsteel Industries, Inc. said its Starkville plant, along with a second facility in Dubuque, Iowa, will permanently close as soon as June. The release said the closure could come “sooner or later based on business conditions,” The Commercial Dispatch reported.

In late March, both facilities were temporarily closed because of a “sudden drop in demand,” the company said.

Flexsteel CEO Jerry Dittmer said deciding to close the facilities permanently was extremely difficult.

“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,” he said. “This pandemic has been unforgiving to too many companies including ours, and we find ourselves with heavy hearts in making these hard decisions as we attempt to navigate these unchartered business conditions.”

The Starkville facility has about 170 workers who make products for recreational vehicles and hospitality customers, the news release said. The company, headquartered in Dubuque, will now focus on home furnishings, e-commerce and workspace solutions.

“The one thing we know is that the organization will look different coming out of the pandemic (than) when it entered,” Dittmer said.

Flexsteel on Tuesday released its third quarter earnings, showing a $5.3 million net loss. Flexsteel credited business changes and the pandemic for the “painful decision” to permanently close the two facilities.

BEFORE YOU GO…

… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Associated Press