The company will close its factories in Lincolnton, N.C., and Iuka, Miss., as well as a rough mill lumber operation in North Wilkesboro, N.C. La-Z-Boy also will consolidate three operations into one at a Taylorville, N.C., upholstery operation.

The Lincolnton facility employs 250 people, while the Iuka factory has 150 workers. The closure of the North Wilkesboro lumber and the consolidation of the Taylorsville facilities, combined with the change in La-Z-Boy's corporate structure, will eliminate approximately 100 positions.

President and CEO Kurt Darrow said the moves were necessary for the company to stay competitive.

"After careful analysis and much consideration, we made the difficult, but correct decision to close several facilities and reduce our corporate workforce to align our company with the current business environment and strengthen our positioning going forward," Darrow said in a statement.

The moves are expected to save the company $11 million a year. La-Z-Boy plans to take charges of 11 cents to 12 cents a share on the closures, with the majority of the costs being recorded in the company's fiscal fourth quarter.

Shares of La-Z-Boy were halted ahead of the news. Earlier, the stock was up 32 cents, or 2.4%, to $13.87.