La-Z-Boy announced Thursday it would immediately close a Mississippi facility employing approximately 300 workers, blaming significant decline in business related to the COVID-19 pandemic.

The move to close the Newton, Mississippi, La-Z-Boy facility is part of a strategic restructuring of the company that will include a 10-percent reduction in overall workforce.

Production will be shifted to available capacity at the company’s Dayton, Tennessee, Neosho, Missouri, and Siloam Springs, Arkansas plants.

The Newton upholstery plant, built in 1960, accounts for approximately 10% of the La-Z-Boy branded business total upholstery production, and manufactures La-Z-Boy recliners, motion sofas and classics (high-leg recliners). The Newton-based integrated internal supply functions will remain in operation. Approximately 170 individuals work across these areas and will remain with the company.

“The COVID-19 pandemic has had a far-reaching impact,” said Kurt L. Darrow, Chairman, President and Chief Executive Officer of La-Z-Boy Incorporated. “We responded quickly in March with our COVID-19 Action Plan to ensure the health, safety and well-being of our employees, customers and the communities in which we operate, while managing short-term liquidity.

“As a result, we are confident we will emerge from the crisis with strength and remain a leader in the industry. Since restarting production at the majority of our plants at the end of April, we have steadily increased production and continue to bring back more employees to meet demand. As more states open and allow our retail partners to re-engage with their customers, we anticipate a stepped process of increasing production and bringing additional employees back to work.”