Daily Journal
HOULKA – Some 130 workers will lose their

jobs at Davis Furniture as the company shifts production of its upholstered living room lines to China.
Lynn Davis, president of Davis International and owner of the former Astro-Lounger line, which is now known as Davis Furniture, released a statement on Friday, saying the move “just made sense since we were importing the sewing kits, the show wood, the fabrics and other pieces and then assembling them in Houlka for shipment.”
Astro-Lounger has been in business since 1970. The company began its case goods operation more than five years ago exclusively with offshore production.
Once production shifts to China, the Houlka facility will serve as a distribution center with about 20 employees. The company also has a warehouse in Okolona.
Davis said the move was necessary in order to stay competitive. Although he admits the company was “coming off the best couple of years in our history,” he said the shift “will help us gain an economy of scale in upholstery; to produce the entire unit in our China factory and ship a total finsihed unit. This process will give us a production and price advantage in the marketplace.”
“We regret the downsizing of our domestic production,” he said, “but anticipate this move will contribute greatly to the growth of our company overall.”
Davis International has showrooms at the furniture markets in Tupelo, High Point and in Las Vegas.
David Rumbarger, president and CEO of the Tupelo-based Community Development Foundation, said the organization regrets the job cuts but applauds Davis “and his corporate vision and innovation to continue the dynamic growth of his company.”
Area officials will work with the Mississippi Development Authority to help displaced workers.
“The furniture industry in Northeast Mississippi is strong and should be able to absorb these skilled furniture workers in a timely manner,” Rumbarger said.

Contact Daily Journal Business Editor Dennis Seid at 678-1578 or dennis.seid@djournal.com