Daily Journal
\nHOULKA \u00e2\u20ac\u201c Some 130 workers will lose their
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\njobs at Davis Furniture as the company shifts production of its upholstered living room lines to China.
\nLynn 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 \u00e2\u20ac\u0153just 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.\u00e2\u20ac\u009d
\nAstro-Lounger has been in business since 1970. The company began its case goods operation more than five years ago exclusively with offshore production.
\nOnce 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.
\nDavis said the move was necessary in order to stay competitive. Although he admits the company was \u00e2\u20ac\u0153coming off the best couple of years in our history,\u00e2\u20ac\u009d he said the shift \u00e2\u20ac\u0153will 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.\u00e2\u20ac\u009d
\n\u00e2\u20ac\u0153We regret the downsizing of our domestic production,\u00e2\u20ac\u009d he said, \u00e2\u20ac\u0153but anticipate this move will contribute greatly to the growth of our company overall.\u00e2\u20ac\u009d
\nDavis International has showrooms at the furniture markets in Tupelo, High Point and in Las Vegas.
\nDavid Rumbarger, president and CEO of the Tupelo-based Community Development Foundation, said the organization regrets the job cuts but applauds Davis \u00e2\u20ac\u0153and his corporate vision and innovation to continue the dynamic growth of his company.\u00e2\u20ac\u009d
\nArea officials will work with the Mississippi Development Authority to help displaced workers.
\n\u00e2\u20ac\u0153The furniture industry in Northeast Mississippi is strong and should be able to absorb these skilled furniture workers in a timely manner,\u00e2\u20ac\u009d Rumbarger said.<\/p>\n
Contact Daily Journal Business Editor Dennis Seid at 678-1578 or dennis.seid@djournal.com\u00c2\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
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