14315 Wed, 04/23/2008 - 12:47pm
ELK GROVE VILLAGE, Ill.–Spring Air is closing its manufacturing facilities in Phoenix and St. Louis, and is relocating its headquarters to its manufacturing and shared-services center in Tampa, Fla.
The moves will result in the elimination of 122 positions in the company, the nation’s sixth largest mattress manufacturer. The St. Louis manufacturing operation will be transferred to the Columbus, Ohio, plant, and the Los Angeles facility will absorb much of the production that took place in Phoenix.
Bob Hellyer, Spring Air’s chief executive officer, explained the moves as part of the company’s efforts to be more efficient. Hellyer became CEO when Spring Air merged with Consolidated Bedding, its largest licensee, in June 2007.
“We took a fresh look at the way we are manufacturing and delivering product, and realized we could actually accomplish more with less,” he said in a company statement. “We have also been taking a look at plants and people, realizing that underperforming sites needed to be closed.”
Hellyer also acknowledged how difficult market conditions have become. “The entire industry is being squeezed by significant increases in raw-material costs and consumer hesitation to make big-ticket purchases,” he said. “We are making these bold moves now, in order for Spring Air to make all necessary moves to keep our costs down and our value ‘conspicuous’ for our retailers.”