NRF Distributors Announce Layoffs

Augusta, MA, March 13, 2007--NRF Distributors, a major distributor of flooring in New England, laid off 42 people Monday, citing sales declines from a softening real estate market, according to the Morning Sentinel.

The cuts represent about 10 percent of the work force, said Bob Haluzak, NRF's vice president of finance.

The layoffs were spread evenly among the 411 people in sales, warehouse and office staff, Haluzak said.

NRF -- which has seen 10 percent sales growth for a number of years, according to company officials -- experienced a downturn this year for the first time in its history.

"We've had phenomenal growth over the past five years, in double digits as a percent of growth," Haluzak said. Since 2001, sales figures have almost doubled and the work force grew by 86, he said.

"It just so happens we started to feel the effect of the real estate slowdown toward the end of last year," Haluzak said. He said the company had hoped to delay layoffs, but saw a drastic drop in sales in February.

NRF officials see the downturn lasting through the middle of 2008.

"We have to take steps proactively to survive," Haluzak said. "We're hoping this is a very temporary slowdown and we hope to recall people."

Those whose jobs were cut have appointments today at the Maine Career Center in Augusta. They will be joined by a representative from NRF's human resources department, who will explain severance benefits and paperwork.

Haluzak said part-time and full-time workers were laid off.

"That's obviously disappointing news for the company and all of us in Augusta," said Michael Duguay, the city's economic and community development director. "It's been such a great company and always one that has grown throughout the years."

Duguay said NRF supplies carpeting, hardwood and other floor coverings directly to housing markets in New York, Boston and Connecticut, where the housing market has weakened.

According to information from the company published in 2004, NRF processed more than 43,000 orders per month in 2004, using more than 60 trucks to deliver products to customers throughout the Northeast twice per week. The company traveled more than 275,000 miles per month on deliveries that year.

Norman Pomerleau is president of NRF. The initials stand for the names of brothers Norman and Roger Pomerleau and their father, Frank X. Pomerleau.

The company has two large warehouses in north Augusta and, several years ago, announced more than $110 million in annual sales.

Recently, it was ranked the ninth largest flooring distributor in the nation.

"In many ways, they're a big factor in the economy," said Peter Thompson, president and chief executive officer of the Kennebec Valley Chamber of Commerce. "It's very unfortunate they're having to take this step. We hope they get through this and can bring these people back on the job soon."

Thompson said NRF recently hosted an annual show for their retail clients, the people who sell the products in retail showrooms throughout Maine, New Hampshire, Connecticut and parts of Massachusetts and New York.

"They filled 400 hotel rooms, and restaurants were busy with their visitors," Thompson said.

Thompson said he is grateful to have NRF in the region.

"Most of the business they do is south and west," he said. "If they were geographically settled in middle of their market, they would be in western Massachusetts or New York."