Tuesday, September 9, 2008

Simmons Closes Ontario Manufacturing Facility Due to CAW Work Stoppage

BUSINESS WIRE --Simmons Canada announced today that it is closing its Ontario, Canada manufacturing plant effective immediately due to an unacceptable loss in revenue and customer business caused by the recent Canadian Auto Workers Local 513 work stoppage at the facility.

Simmons Canada President Paul Bognar says that the effects of the strike have compromised the plant’s economic viability. “The decision to close our Ontario plant was not an easy one, but we feel it is necessary in order for Simmons Canada to maintain its market share and preserve our customer base,” said Bognar. “Our number one priority is providing consistent customer service to our dealer network, and we are working to make this transition as smooth as possible for Simmons Canada retailers.”

A significant portion of the plant’s production volume will continue to be manufactured in Canada; approximately 25 percent will be handled by Simmons Canada facilities in Kirkland, Quebec and Calgary, Alberta with the remainder carried out by Simmons U.S.A. plants in Janesville, Wis. and Hazelton, Pa. The same four facilities have handled the Ontario plant’s product orders since employees initiated a work stoppage on August 15.

With the closure of the facility come the layoffs of 145 associates and eight administrative personnel, who are represented by the union. For more information, visit www.simmonscanada.com.

This press release includes forward-looking statements that reflect our current views about future events and financial performance. Words such as “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “forecasts” and variations of such words or similar expressions that predict or indicate future events, results or trends, or that do not relate to historical matters, identify forward-looking statements. The forward-looking statements in this press release speak only as of the date of this report. These forward-looking statements are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from our expectations. These factors include, but are not limited to: (i) general economic and industry conditions; (ii) competitive pricing pressures in the bedding industry; (iii) legal and regulatory requirements; (iv) the success of our new products and the future costs to roll out such products; (v) our relationships with and viability of our major suppliers; (vi) fluctuations in our costs of raw materials and energy prices; (vii) our relationship with and viability of significant customers and licensees; (viii) our ability to increase prices on our products and the effect of these price increases on our unit sales; (ix) an increase in our return rates and warranty claims; (x) our labor relations; (xi) departure of our key personnel; (xii) encroachments on our intellectual property; (xiii) our product liability claims; (xiv) our level of indebtedness; (xv) interest rate risks; (xvi) foreign currency exchange rate risks; (xvii) compliance with covenants in our debt agreements; (xviii) our future acquisitions; (xix) our ability to achieve the expected benefits from any personnel realignments; and (xx) other risks and factors identified from time to time in our reports filed with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements, either to reflect new developments or for any other reason.

-----

www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page

No comments: