Furniture chain Room & Board laying off 116

February 14, 2009 at 3:31AM

The persistent slowdown in consumer spending has caused Edina-based furniture retailer Room & Board to lay off 116 people companywide, or about 18 percent of its workforce.

The cuts came on Feb. 5, and affected workers at all eight stores as well as seven distribution centers and corporate headquarters, said Bruce Champeau, Room & Board's vice president of operations.

"It was a difficult and painful choice," said Champeau, who said the retail stores and distribution centers were hit the hardest by the layoffs. "When you have a steep decline in sales, the volume going though the distribution centers isn't what it used to be. You don't need as many people to process orders or deliver merchandise."

Champeau said sales are down about 30 percent since last year.

The company still plans to open a new store in Atlanta at the end of April and continues to beef up its newly launched website and to explore new market opportunities, he said.

JACKIE CROSBY

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