United Furniture Industries and its subsidiary Lane Home Furnishings unexpectedly announced they will cease operations immediately. The Tupelo, Miss.-based company said the move was due to unforeseen circumstances.
The nearly 40-year-old company employed more than 2,700 people during a reorganization of its warehouse and distribution centers this past summer, but it’s unclear how many employees will be impacted by the closure. Company employees were notified that all benefits were terminated immediately without COBRA benefits. Over-the-road drivers on delivery will be paid for the balance of the week.
“We regret that this difficult and unexpected situation has made this necessary,” the company said in its letter to employees. “Additional information will be provided shortly.”
During its restructure this past summer, United closed a metal-stamping plant in High Point, N.C., and shifted its Winston-Salem, N.C.-upholstery manufacturing operation to a distribution center and production facility in Armory, Miss. to a warehouse operation. The company laid off around 300 employees during that restructure.
A request for comment was not returned.