Masland To Make More Cuts, Reorganize Business

July 30, 2009

Dixie Group, Inc., the parent company of Masland Carpets, announced Wednesday that it will reorganize the business in an attempt to return profitability by further cutting costs.

The company will combine its three residential carpet brands — Masland, Fabrica and Dixie Home — into one business while maintaining the three distinct brands.

“As a result, our residential business will be organized much like our commercial carpet business and more like the rest of the industry,” said Daniel K. Frierson, chairman and chief executive officer of Dixie Group.

“The new structure should enable us to improve our responsiveness to customers’ changing needs and market conditions as well as enhance our operating capability, while significantly reducing costs. We will continue to build and invest in our brands – Masland Residential, Fabrica, Dixie Home, Masland Contract, and Whitespace; each has a distinct character and each is designed to appeal to and attract different customers,” Frierson said.

The company expects to cut up to an additional 60 jobs across all of its operations, partially by combining sales forces.

There are 325 people employed by Masland in Atmore and 340 in Saraland, Alabama. The two locations lost 70 jobs earlier this year as the company cut 25 percent of employees over an 18 month period.

Masland will  attempt to cut another $8 to $10 million in expenses during 2010.

Dixie Group sales for the second quarter of 2009 were $52,572,000, down 32 percent from $77,155,000 in the year-earlier quarter.

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Written by William Reynolds · Filed Under News