Flexsteel Industries, the fifth largest residential furniture maker in the U.S., will shut down its commercial, office, and hospitality furniture lines. The company will also close a manufacturing facility in Riverside, California, laying off 130 workers.

“While exiting businesses and reducing staff is not an easy decision, we are confident it is the right first step toward Flexsteel’s future,” said Jerry Dittmer, President and CEO of Flexsteel Industries. “The Commercial Office and custom-designed Hospitality product lines we are exiting represent approximately 7% of our annual revenue and did not align with our strategic direction to focus on profitable core businesses."

In total, Flexsteel expects to incur approximately $4 million in one-time cash charges for employee severance and related costs and approximately $9 million in non-cash charges for inventory impairments because of the closure.

Flexsteel's main manufacturing location is in Dubuque, with five other plants throughout the United States and Mexico before the closure. Its sales were an estimated $469 million in 2017. Flexsteel employed around 1,400 workers before the closure.

Flexsteel made news in late 2016 after it announced it would abandon its manufacturing presence in Iowa, with plans to close its main plant and lay off 200 workers. Soon after however, the state of Iowa stepped in, offering the company a $10 million incentive package to stay. Flexsteel chose to remain in Iowa. Former CEO Karel Czanderna also resigned abruptly in September 2018.