Levi Strauss announces intention to close six plants (U.S. plants)

Associated Press / SFGate

[RCW2001]

Monday, April 8, 2002
©2002 Associated Press

URL: http://www.sfgate.com/cgi-bin/article.cgi?f=/news/archive/2002/04/08/financial1024EDT0056.DTL

(04-08) 07:24 PDT SAN FRANCISCO (AP) --

Jeans maker Levi Strauss & Co. said Monday it will shutter six U.S. manufacturing plants this year and cut 3,300 jobs, or about 20 percent of its workforce.

The company, whose sales have been sagging, has said it wanted to outsource the manufacture of its clothing and move toward marketing the finished product.

"There is no question that we must move away from owned-and-operated plants in the U.S. to remain competitive in our industry," said Philip Marineau, chief executive officer.

The plants will close in three phases, Levi Strauss said in a statement.

In June, the company will close plants in San Francisco and Blue Ridge, Ga.; in August, plants in Brownsville and San Benito, Texas; in October, plants in Powell, Tenn., and El Paso, Texas.

The company said it will continue to operate a sewing plant and a finishing center in San Antonio, though it will cut about 300 jobs there too.

A poor sales start this year put Levi's on track for its sixth consecutive year of declining revenue.

The San Francisco-based company's sales totaled $935.3 million for the three months ended Feb. 24, a 6 percent decline from the same time in the prior year.

Laid-off employees will receive a "separation package," the company said.

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On The Net:

www.levistrauss.com

©2002 Associated Press  

[billbears]

put a tariff on textiles. That'll work and fix everything < /sarcasm>

[RCW2001]

Also see related, LOL!

Letter from Levi Strauss About Its Anti-2nd Amendment Activities

Levi Strauss Anti Gun Stance

[Frumious Bandersnatch]

I'm wondering if they didn't start a backlash several years ago when they dropped their support for the BSA.  I was a big fan of their until that moment, when I haven't bought anything of theirs since.

[Howie66]

My heart just aches for the Levis Company. Just kidding!

It seems that their sales have gone into the tank since the company decided to stop supporting the BOY SCOUTS of AMERICA. That was when I stopped buying their jeans for my family.

[glc1173@aol.com]

"The company, whose sales have been sagging, has said it wanted to outsource the manufacture of its clothing and move toward marketing the finished product. "There is no question that we must move away from owned-and-operated plants in the U.S. to remain competitive in our industry," said Philip Marineau, chief executive officer." (Associated Press)

Has Levi Strauss announced plans to cut Third World production for the U.S. market?

American workers are screwed whether or not Levi Strauss survives if Levi Strauss "outsources" production to Mexico or Red China.

This same issue has come up around here with Guilford Mills. Guilford Mills - major area employer in textile industry - moved production to Mexico, then went broke anyhow. Another major area mill did the same.

NAFTA is no help for American workers.

[sinkspur]

I don't get paying 30 bucks for jeans.

Target's jeans are $15.00, and fit and wear every bit as well as Levis.

[szweig]

Yep...between their anti Second Amendment ranting and their blatant pandering to the homosexual lobby they have lost a lot of business - mine included. I'll never buy another Levi Strauss product. Pity, because I liked their stuff. Oh well...

[stevio]

I haven't bought Levi jeans since they adopted an anti-2nd Amendment stand. Their non-support for the Boy Scouts just shows more of their liberal bias. So in effect, I'm getting double my money's worth from my boycott.

[MarkWar]

>Levi Strauss announces intention to close six plants (U.S. plants)

[sighs] Another day, another 3,300 US citizens out of work.

Perhaps all these companies think that soon a giant asteroid is going to smash into North America and they're trying to get their companies ready for after the crash...

Or maybe they're money-grubbing scum with no commitment to patriotism, no commitment to local culture, no commitment to anything other than range-of-the-moment maximizing of share-holder value.

One or the other of these things is at work here. Either it's the invisible hand of knowledge of up-coming terror, or it's the invisible hand of enlightened self interest economically.

(One way or the other, ten years from now in the US life probably will be very different from what it was ten years ago...)

Mark W.

[painter]

"It seems that their sales have gone into the tank since the company decided to stop supporting the BOY SCOUTS of AMERICA. That was when I stopped buying their jeans for my family."

The reason Levi dropped thier support for the BSA was the Scouts refusing to allow openly gay men to be Scout leaders.

There is no way I'll ever buy Levi's ever myself!

[RWG]

Priced any Levis lately? Surprised they lasted this long. Used to have the just right fit, now everyone does. Priced themselves right into the 3rd world labor market and put Americans in the unemployment lines, great job!

[Reagan is King]

Same here! I haven't (knowingly) bought a Levi's product since they took the side of the gay rights crowd versus the Boy Scouts many years ago. I don't like their anti-gun drivel either so that's just another reason to dump them.

It looks like they needed to concentrate on their business a little more and stay away from the social issues. I feel for the laid-off workers but NOT the company.

[going hot]

I love the smell of failed anti second amendment businesses first thing in the morning!!

[wheezer]

shame, too ... cuz their button fly jeans were excellent

Still are, and I still wear `em, but I only buy them at thrift stores.

[spectre]

Well, it might have alot to do with the fact that stores like Old Navy and The Gap have their own label and Levis just aren't "cool" anymore.

sw

[wheezer]

Don't forget their "holiday" gift to their Christian customers a few years back....a "condom Christmas tree".

[ladytrucker]

Levi's is one of the most poorly run companies in america. I have relatives who work there and believe me, they are the only people there who seem to be doing their jobs. Levi's has huge layers of administration that come in at 10 in the morning, take two to three hour lunches and leave before five. then the company hires contract workers to do the work their regular employees can't (or won't) finish! the kicker is that when layoffs happen, it's not the long-time, entrenched incompetents that are fired, but the younger productive workers who are not steeped in Levi's "progressive" culture. Hard to believe, but it's the TRUTH!