Invacare to close facility in Florida
By HME News Staff
Updated 9:42 AM CDT, Tue April 11, 2023
ELYRIA, Ohio – Invacare will close its production and distribution facility in Sanford, Fla., at the end of September 2023, in a move that will impact about 90 associates, according to a Form 8-K filed with the U.S. Securities and Exchange Commission.
The company will move the manufacturing and distribution activities that take place at the Sanford facility to other locations or have them conducted by third parties.
“This decision is supportive of the company’s transformation efforts and is part of the company’s long-term plan to increase shareholder value by targeting significant contributions from cost reduction activities in North America,” it stated.
Invacare expects the closure to result in pre-tax cash restructuring charges of about $1.7 million in the North America segment, $900,000 for severance and transition assistance and $800,000 for other closure-related costs. It expects to expense the charges in the second and third quarters of 2023 in alignment with the planned timing for the closure.
Once closed, the company expects to generate about $5 million in annualized pre-tax savings.
Invacare announced in February that it had filed for Chapter 11 in Texas.
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