Posted on 11/07/2003 8:05:55 AM PST by Willie Green
Edited on 05/26/2004 5:17:20 PM PDT by Jim Robinson. [history]
EVERLAST Worldwide Inc. announced last Friday that it will close its Bronx plant in December, eliminating 100 jobs. Production of boxing trunks, speed bags and other equipment will move to the company's plant in Missouri.
Everlast expects the move to save $2.8 million a year. That's a huge savings for a relatively small concern, with sales of $66 million in 2002. Company managers would be ignoring their fiduciary responsibility to shareholders if they were to pass up the opportunity.
(Excerpt) Read more at nypost.com ...
Owl_Eagle
" WAR IS PEACE
FREEDOM IS SLAVERY
DIVERSITY IS STRENGTH"
A vivid reminder of what many of us have been saying for years in response to your posts, Willie. Our economy thrives on "creative destruction". Some companies lose jobs, but the dynamism in our economy leads to more jobs somewhere else.
The alternative is to protect jobs in existing companies. Then we'd be Europe, where people's jobs are secure, alright, but the economy is in the dumper and has no prospects of recovery. And the poor folks stuck without a job have grim prospects of finding one.
We know that nationally 126,000 jobs were made in the past month
Give up some details! I know some people around here would be interested. Heck, I might even update my resume. :-)
And nothing in this article about losing 100 jobs, just it is being consolidated:
Press Release Source: Everlast Worldwide Inc. Everlast Worldwide Inc. Announces the Relocation and Consolidation of Its Bronx, New York Manufacturing Facility Into its Moberly, Missouri Facility
Friday October 31, 10:00 am ETConsolidation of facilities to result in estimated $2.8 million in annual savings
Realization of efficiencies to start during first quarter of Fiscal 2004
Company will record a one-time pre-tax charge of $1.7 million in fourth quarter, $1.1 million non-cash, related to facility relocation and consolidation
NEW YORK, Oct. 31 /PRNewswire-FirstCall/ -- Everlast® Worldwide Inc. (Nasdaq: EVST - News), manufacturer, marketer and licensor of sporting goods and apparel under the Everlast brand name, today announced that it will relocate its Bronx, New York sporting goods manufacturing facility and consolidate and integrate those professional and retail product operations into its Moberly, Missouri sporting goods manufacturing facility. As part of the relocation and consolidation, the Company will recognize a non-recurring restructuring charge in the fourth quarter of fiscal 2003 against income from operations of approximately $1.7 million. This restructuring charge will consist of costs associated with the discontinuance of certain products, factory labor and related overhead costs resulting from idle capacity in the Bronx, severance, lease exit and other disposal costs. Approximately, $1.1 million of this charge will be non-cash in nature. The Bronx facility is expected to close in December 2003 and will affect approximately 100 employees."While we plan to incur non-recurring restructuring costs associated with the discontinuance of certain inventories, and other expenses related to the relocation and consolidation of approximately $1.7 million pretax in the fourth quarter of fiscal 2003, we believe the relocation and consolidation will have a direct and positive impact on our organization and are confident that we will begin to realize efficiencies and savings during our first quarter of our fiscal 2004. We are projecting annual savings of approximately $2.8 million from this relocation and integration," said George Q Horowitz, Chairman and Chief Executive of Everlast Worldwide Inc.
Mr. Horowitz added, "The decision to relocate the sporting goods manufacturing facility in the Bronx was a difficult one. Regrettably, this closure will affect workers who have done a tremendous job for the Company over the years. We're in a highly competitive industry where few sporting good brands own and operate manufacturing facilities in North America. In order to remain competitive, we need to focus our resources on the most cost efficient manufacturing and supply chain processes while enhancing our sales and marketing efforts in support of our retail customer relationships. The Bronx facility, which we assumed as part of the Everlast World Boxing Headquarters, Inc. acquisition in October 2000, is leased through April 2004, however we were notified that the lease renewal would contain significant lease escalation costs, which would more than double the rent and make it cost prohibitive to continue to manufacture there. As a result, we concluded that it was best for the Company and its shareholders to consolidate and integrate the facility into our modern Moberly, Missouri facility which we own. This will result in the creation of additional jobs at the facility, whose employees are represented by LOCAL 820, International Union of Electronic, Salaried, Machine and Furniture Workers."
Most employees affected by this decision are represented by the LOCAL 819, International Brotherhood of Teamsters. Relocation and severance arrangements for these employees will be guided by LOCAL 819 I.B.T. agreements with this union.
About Everlast Worldwide Inc.
Everlast Worldwide Inc. manufactures markets and licenses sporting goods and apparel products under the Everlast brand name. Since 1910, Everlast has been the preeminent brand in the world of boxing and is among the most dominant brands in the overall sporting goods and apparel industries. Over the past 90 years, Everlast products have become the "Choice of Champions(TM)", having been used for training and professional fights by many of the biggest names in the sport. Everlast is the market leader in nearly all of its product categories, responsible for leading eight of the top ten boxing equipment products in sales. Through its apparel division, Everlast men's and women's active wear products are sold to over 20,000 retail locations throughout the United States and Canada, including a variety of department stores, specialty stores, catalog operations and better mass merchandisers. In addition to producing and marketing the equipment and accessories, Everlast Worldwide Inc. licenses its brand to providers of men's and women's sportswear and active wear, children's wear, footwear, watches, cardiovascular exercise equipment and gym/duffel bags. At the retail level, Everlast's licensed products generate over $500 million in revenues. The company's Web site can be found at http://www.everlast.com.
Statements made in this Press Release that are estimates of past or future performance are based on a number of factors, some of which are outside of the Company's control. Statements made in this Press Release that state the intentions, beliefs, expectations or predictions of Everlast Worldwide, Inc. and its management for the future are forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Information concerning factors that could cause actual results to differ materially from those in forward- looking statements is contained from time to time in filings of Everlast Worldwide with the U.S. Securities and Exchange Commission. Copies of these filings may be obtained by contacting Everlast Worldwide or the SEC.
Source: Everlast Worldwide Inc.
I take it that you support the "creative destruction" of our electric power generation infrastructure in favor of tilting at windmills.
New York is loosing jobs while
the country as a whole is creating them. So local governments need to change policies, but GWB doesn't.
While even some defense work can be off-shored, some of the programs are completely and utterly immune from such fears.
I think we're out of the woods. I just don't think the economy is perfect yet (nor will it ever be). After 9/11 the economy was down 800K jobs. It's already started adding them back. I sincerely hope things improve for you soon.
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