DALTON, Ga. — A month after filing for bankruptcy, Dalton-based floor covering manufacturer Beaulieu Group said Tuesday it is eliminating some 170 jobs, mostly in management.

“As part of its reorganization plan, Beaulieu Group LLC is restructuring its management and eliminating approximately 170 positions,” said Beaulieu President Michael Pollard in a statement. “The majority of reductions are management and senior management positions and are spread across the company. The organization will be far leaner with a focus on manufacturing great product, selling great product and managing our assets effectively.

“These decisions were extremely difficult for us to make as they impact our colleagues and friends, but when announcing the reorganization one month ago we indicated that we would need to find cost-efficiencies in order to strengthen our long-term financial viability. This is an ongoing and challenging process for Beaulieu, but we remain committed to providing high-quality products as we regain our position in the marketplace.”

Dave Foster of TalkFloor.com, which covers the floorcovering industry, says the announcement isn’t a surprise.

“They are restructuring,” he said. “And cleaning house among the management, you’d expect to be part of that.”

Beaulieu Group filed for chapter 11 bankruptcy in July in the U.S. Bankruptcy Court for the Northern District of Georgia in Rome. Chapter 11 is often called reorganization bankruptcy because it allows a firm to reorganize its debt, as opposed to Chapter 7 bankruptcy in which a company is typically liquidated. 

The 40-year-old company is privately owned and manufactures and distributes carpet, engineered hardwood and laminate and luxury vinyl tile (LVT) flooring. It had some 2,500 employees in 12 locations, mostly in northwest Georgia, including corporate headquarters in Dalton and three plants and a distribution center in Whitfield County. As a privately owned company, it does not report revenues.

Beaulieu was once the third-largest carpet manufacturer in the United States but has been pushed to fourth place by Engineered Floors, which was founded by carpet industry veteran Robert E. “Bob” Shaw in 2009, according to analysts.

“Engineered Floors really ate their lunch,” said Foster.

Analysts said Beaulieu has also been hurt by its failure to move into hard surface flooring in a major way.

“There’s been a huge sea change in the floorcovering industry,” said Ken Ryan, senior editor at Floor Covering News. “Mohawk and Shaw have both positioned themselves to be where the market flows. But Beaulieu was late to hard surface, and to this day really isn’t a full flooring company. They are still largely a carpet company. Carpet is a very tough market these days. Shaw and Mohawk do well there, but they do well in every other category. They are well positioned in everything.”