Latexco U.S. will close its East Coast and West Coast production facilities and continue to supply customers through a direct container program by accessing its global network.
Weak demand in the U.S. market has accelerated the decision from its Belgium-based parent company to cease U.S. production, according to Koen Gebruers, chief executive officer of Latexco U.S.
But the company remains committed to supporting U.S. customers with Brent Limer, chief sales officer, leading all sales and transitional activities.
“Our diligent watch and analysis of market trends have guided us in this decision to consolidate the business in order to continue providing high quality products while being more competitive in price and effective in servicing our valued customers,” Gebruers said.
Production in Lavonia, Georgia, where Latexco U.S. is headquartered, as well as in Phoenix is expected to stop by the end of the month with the successful transition for customers and employees completed by the end of the year. The closures will affect about 50 employees across both locations, and the company is aiding through the transition.
Latexco U.S. employees and key customers received notification earlier this week, and a full liquidation of the business is underway. Gebruers noted that it will be a “clean liquidation” with no debt or accounts unsettled. The Lavonia facility totaling 175,000 square feet will be offered for sale. The Phoenix facility is a leased property.
Latexco U.S. began operations at its Lavonia headquarters in 2006 with strategic plans for bicoastal expansion to provide both latex and polyurethane foam to the bedding industry. It opened its Phoenix plant in 2018. Parent company Latexco, headquartered in Tielt, Belgium, is a leading manufacturer of latex foam components to the bedding industry with production capabilities in Belgium and Spain.