On August the 7th, Armstrong Flooring Inc. filed a WARN Notice with the Tennessee Department of Labor and Workforce Development. In the notification, Armstrong Flooring confirmed that it would soon be shutting down its manufacturing plant at 160 Rosedale Street in Jackson, Tennessee. The permanent closure will take effect on October 6, 2017 and it will lead to the layoff of 215 workers.
The company, which is based in Lancaster, Pennsylvania, will also be shutting down a Vicksburg, Mississippi plant. In total, the company is expected to shed more than 300 jobs. 93 workers at the Vicksburg plant will lose their jobs. The plant was used for the production of veneer and plywood. Company spokesman, Stephen Trapnell, confirms that the company will be offering severance packages and impacted employees are encouraged to seek work at other company plants.
A spokesperson with Armstrong admitted that declining sales attributed to the decision. The company also suggests that improved productivity will allow the company to serve customers with fewer plants. The closures are expected to save the company around $8 million each year.
Armstrong Flooring has also found a new CFO with hopes of boosting profits and cutting costs. On September the 1st, Ronald D. Ford will take over as the company’s CFO. The previous CFO, John “Jay” W. Thompson, stepped down in April.
Ford will assume the role from interim CFO Kimberly Z. Boscan. Earlier this month, Armstrong announced a quarterly declining in sales and profits, as well as the aforementioned plant closures.