Closure of La-Z-Boy plant ‘devastating’ for Newton County

Published 4:30 pm Friday, June 5, 2020

Cheryl Owens / The Meridian Star La-Z-Boy announced Thursday it is permanently and immediately closing its upholstery manufacturing facility in Newton, laying off about 300 workers.

The closing of the La-Z-Boy upholstery manufacturing facility in Newton is the worst blow Newton County has suffered in years, according to local and state officials.

Citing the impact of the COVID-19 pandemic, the furniture company announced Thursday it is permanently and immediately closing the plant on Scanlan Street, laying off about 300 workers.

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“La-Z-Boy’s the heart and soul of downtown Newton. It’s been there since 1960,” said State Sen. Tyler McCaughn, who represents District 31. “It’s devastating to the whole community…300 jobs in a town this size – that’s 300 families.”

“It’s going to hurt Newton County,” said Newton County District 1 Supervisor Kenny Harris, whose district covers Newton. “Especially the revenue. It’s going to hurt the schools. But the main thing I’m worried about those people who won’t have a job anymore.”

“For something that’s been there more than 60 years, it hurts,” Harris added. “There are a lot of lives that have been through that company.”

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The closing of the Newton plant is part of 10 percent reduction in the company’s global workforce, affecting around 850 employees at its manufacturing, retail and corporate locations, according to a news release. Production will be shifted to plants in Dayton, Tennessee, Neosho, Missouri and Siloam Springs, Arkansas.

The facility furloughed workers this spring because of the pandemic, but brought some back to make face coverings for medical workers.

La-Z-Boy also has a facility on Highway 15, where about 170 people work. Those workers will remain with the company, according to the news release.

McCaughan said keeping that facility open is a priority at the state level.

“We are going to do everything we can to provide incentives to keep Plant 21,” he said. “We want to do everything we can to keep those 170 jobs….and we’re going to do everything we can to make sure East Central (Community College) has the money they need for workforce development and training.”

But, McCaughan worried that the closure is a sign of more manufacturing cuts around the state due to the pandemic.

“Unfortunately, it’s the tip of the iceberg for the state,” McCaughn said. “I’m afraid this is foreshadowing what’s coming down the pipe.”