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Published in Manufacturing

Cyberattack caused global shutdowns for Steelcase, potential for delayed shipments

BY Thursday, November 12, 2020 12:04pm

GRAND RAPIDS — A recent cyberattack caused global operations for office furniture manufacturer Steelcase Inc. to shut down for two weeks, according to new information the company submitted to the U.S. Securities and Exchange Commission.

Steelcase’s latest Form 8-K filed today highlights the devastation that ensued after the company reported the attack on Oct. 22. In that initial filing, Grand Rapids-based Steelcase stated that “although cyberattacks can be unpredictable, (Steelcase) does not currently expect this incident will have a material impact on its business operations or its financial results.”

Today’s filing paints a different picture. In it, Steeclase revealed that it shut down most of its global order management, manufacturing and distribution systems for two weeks following the attack. As of now, operations have returned to normal.

“(Steelcase) has resumed normal operations and is working to ship orders delayed by the shutdown and to return to normal order lead times,” the filing said. “Due to the time of the operational shutdown, which spanned into early November, (Steelcase) expects that some shipments which were originally scheduled for the company’s third quarter will not ship until the fourth quarter.”

The statement says Steelcase incurred additional costs for overtime and expedited freight as it works through the backlog of orders. Steelcase also incurred costs related to remediating, restoring and reinforcing its systems.

Steelcase also stated there is no evidence suggesting sensitive business data — including intellectual property and customer, supplier and employee data — had been exfiltrated from the system.

The attack comes as Steelcase and the rest of the office furniture industry finds its footing after the debilitating effects of the COVID-19 pandemic. In September, Steelcase announced workforce reduction measures affected hundreds of employees. In the most recent quarter that ended Aug. 28, Steelcase reported an 18 percent revenue decline from the same period last year and a 28.6 percent decline year-to-date.

Read 5296 times Last modified on Thursday, 12 November 2020 12:08
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