Interface will close the majority of its FLOR retail stores between January and April and take a charge of a total of about $25 to $27 million in a restructuring plan.
The job reductions include about 70 FLOR workers and “a number of other employees in the commercial business in the Americas and Europe regions,” the company said.
In Q4 2016, the company expects to incur a pre-tax restructuring and asset impairment charge of approximately $17 to $19 million and an additional $7 to $9 million in Q1 2017. The charges are comprised of severance expenses, lease exit costs, impairment of assets and other items. The restructuring is seen complete in H1 2017 and is expected to bring annual cost savings of $13 to $14 million beginning in fiscal 2017.
The company will “maintain design and innovation hubs with our locations in Upper East Side Manhattan, SoHo NYC and San Francisco,” it said.