Unifi announces corporate reorganization

Source: Supply Chain Digital

Date :8/28/2007 10:10:15 AM

Unifi, Inc. will reorganize certain corporate staff and manufacturing support functions to further reduce costs and achieve its financial goals.

Approximately 25 employees will be affected as a result of this current reorganization. Combined with previous cost reductions this quarter, the company expects to reduce its support costs by approximately $8.0 million in the current fiscal year ($9.0 million on an annualized basis). The company will accrue a severance expense of approximately $3.6 million for the quarter ended in September, which includes severance of $2.4 million in connection with the termination of its former chief executive officer.

"It is imperative that we continue to match our support costs to the size of our current business," says William Lowe, Unifi's chief operating officer and chief financial officer. "We absolutely must institute a cost-conscious culture. We must minimize our costs at the support level, while maintaining world-class service, product innovation, and quality to successfully compete in our market and reach our goals. We have a balance sheet that supports our strategies and our recent announcement of outsourcing certain raw materials will provide the flexibility to our polyester production facilities, which has been lacking over the past twelve months. Our overall corporate strategies remain unchanged, and we look forward to driving success that will be reflected in our financial statements," continues Lowe.