A furniture manufacturing company is closing the "Winnipeg" production facility, resulting in more than 200 people losing their jobs.

Andrew DeFehr told CTV News that the decision was made weeks ago and employees were informed on Wednesday. "It was very difficult.

The factory manufactures master bedrooms, home offices, and entertainment box goods, which are furniture built with internal storage capacity.

It has been operating for 75 years and was previously owned by "Palliser Furniture." DeFehr said it was difficult to turn a profit before the pandemic and now supply chain delays have led to increased costs and reduced net profits.

"Shipping costs have tripled on the items I need to get from abroad. In some cases, the shipping cost is now more than the item I buy." The company added that all customer orders will remain fulfilled.

He said the company is hosting job fairs for employees scheduled to be laid off and is working with several large Winnipeg companies to place employees in new jobs. The facility will cease operations on August 10.