By By Chandler Myers
For the second time in six months, Masland Carpets &Rugs may see a consolidation headed its way if parent company The Dixie Group chooses to move one of its facilities from the west coast to south Alabama.
Officials with The Dixie Group said they are looking into consolidating its Fabrica Division from California to facilities in the eastern United States, mainly Atmore, and including Saraland.
The previous consolidation was the move of Dixie’s carpet tufting operation in Eton, Ga. to the tufting, dyeing and finishing facility in Atmore.
In moving Fabrica to Masland, Dixie would incur $3 million to $5 million in costs, but could get those finances back in less than a year. Another cost cutting measure of the move would be removing 13 percent of the company’s employees with Fabrica. Chief Financial Officer Gary Harmon said the company is still looking into all possibilities.
Another cost cutting measure of the move would be removing 13 percent of the company’s employees.
Harmon, said a move to the Atmore plant could bring additional employment opportunities in the future with some jobs available immediately. He added that in the long term more employment could be gained.
If the Fabrica division is not moved then it will likely be sold.
Placing Fabrica on the market would help further reduce the $93.8 million debt that Dixie has run into.