The demand for residential furniture products has continued to decline with the depressed housing market, the sub prime mortgage default driven credit crisis and higher fuel costs.
Ronald J. Klosterman, President and CEO, Flexsteel

Upholstery manufacturer Flexsteel will close its New Paris, Indiana plant and end manufacturing operations at its Lancaster, Pennsylvania facility. The company expects manufacturing at both locations to cease November 9, 2008.

According to Ronald J. Klosterman, Flexsteel's President and Chief Executive Officer, "The demand for residential furniture products has continued to decline with the depressed housing market, the sub prime mortgage default driven credit crisis and higher fuel costs."

Klosterman added, "Flexsteel began operations in Lancaster in 1955 and in New Paris in 1982. We appreciate the long-term relationships with our skilled and dedicated employees at these locations and are saddened to bring these operations to a close. We wish all of our affected employees much success in the future."

Products currently manufactured in the New Paris facility will be transitioned to Dubuque, Iowa, and the current Lancaster production will be transitioned to another Flexsteel manufacturing facility in order to meet customer shipment requirements.

Approximately 250 employees will be affected by the plant closures.