Bassett Furniture plans to save $7 million to $8 million a year with a new cost-cutting plan. The company last month announced its fourth-quarter sales fell 19%, to $62 million. What’s more, it posted a net loss of $37.8 million during the quarter.
How will Bassett save up to $8 million? The company on March 1 closed its distribution center in Mount Airy, NC. All work from the facility has been transferred to other centers in the U.S. and Asia.
Bassett is also cutting 50 jobs companywide in corporate retail, administration, customer service, manufacturing, and marketing. And the manufacturer/merchant will reduce its marketing presence on television.
Its print catalog, which was launched in 2006, will also be smaller going forward: Bassett plans to change from a 48-page standard size catalog to a 24-page slim-jim book (6” X 10 ½”), according to marketing analytics and circulation director Jay Moore.
What’s more, the company will reduce catalog circulation 30%.
Bassett is investing in revamping its Website, however. The new-and-improved site is set to debut around May 1.