STARKVILLE, Miss. (WTVA) - Flexsteel Industries is closing its Starkville and Dubuque, Iowa, manufacturing facilities.
Why? The company said the closures are because of declining customer demand and changing market conditions due to the coronavirus pandemic.
In late March, both facilities were temporarily shut down because of drops in demand as many of its 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,” Jerry Dittmer, the Flexsteel president and CEO, said.
The Starkville facility employs approximately 170 people 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,” the company stated in a news release.
Both facilities may close as early as June; however, the date may come sooner or later based on business conditions.