Bassett Furniture Plans to Save $7 million to $8 million a year with a new cost-cutting plan. The company’s fourth-quarter sales fell 19%, to $62 million; Bassett also 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 that facility has been transferred to other centers in the U.S. and Asia.
Bassett also said in March that it’s 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 (measuring 6″ × 10-1/2″), according to marketing analytics and circulation director Jay Moore.
What’s more, the company will reduce its catalog circulation by 30%.
One place Bassett is not cutting back is online. The company this year has been investing in revamping its Website, with the new-and-improved site scheduled to debut around May 1.