Home / Knowledge / News / Textiles / Interface to cease manufacturing operations at Belleville facility
Interface to cease manufacturing operations at Belleville facility
08
Jan '09
Interface Inc announced restructuring actions as part of the Company's plan to reduce costs across its global operations in response to softening demand.

Pursuant to the Company's restructuring plan, Interface will cease manufacturing operations at its facility in Belleville, Canada, and reduce its worldwide employee base by a total of approximately 530 employees in the areas of manufacturing, sales and administration.

The headcount reductions amount to about 14% of the Company's worldwide workforce. The Company will retain its sales and distribution presence in Canada and will source products from other Interface facilities to service customers in the region. As a result of the restructuring, Interface expects annualized cost savings of approximately $30 million.

Interface plans to complete the restructuring activities in the first quarter of 2009 and expects to report a pre-tax restructuring charge in the fourth quarter of 2008 of approximately $11 million related to employee severance, asset impairment related to the manufacturing cessation in Canada and other exit costs. Approximately $8.5 million of the restructuring charge will be cash expenditures, primarily severance expense.

"Interface continues to be focused on reducing expenses, increasing operational efficiencies and generating cash for debt reduction," said Daniel T. Hendrix, President and Chief Executive Officer.

"While the decision to take the actions we are announcing today was a difficult one and we sincerely regret the impact it will have on many of our hard working associates, it was also a necessary step in adapting our Company to the current demand levels."

"Interface remains the global leader in modular carpet tile, and it is important that we protect our profitability, cash flows and positioning in the marketplace, while also preserving our ability to invest in strategic initiatives such as market diversification and emerging geographic markets. As a result of our restructuring, we are moving forward as a leaner company while maintaining our ability to provide superior service to our customers globally."

Interface Inc is the world's largest manufacturer of modular carpet, which it markets under the InterfaceFLOR, FLOR, Heuga and Bentley Prince Street brands, and, through its Bentley Prince Street brand, enjoys a leading position in the designer quality segment of the broadloom carpet market. The Company is committed to the goal of sustainability and doing business in ways that minimize the impact on the environment while enhancing shareholder value.

Interface Inc

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

MEGlobal to build first ever US MEG plant

Monoethylene glycol (MEG) producer MEGlobal plans to construct a new...

Courtesy: Ulster Carpet

Textiles | On 25th Mar 2017

Ulster Carpets acquires Griffith Textile Machines

Northern Ireland based manufacturer of carpets, Ulster Carpets said...

Interviews View All

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search