Willie prepares for another day of Freeping.
Posted on 11/11/2003 4:38:23 PM PST by Willie Green
For education and discussion only. Not for commercial use.
Dan River Inc., the largest manufacturer in Sevier County, told state and local officials late Monday that it is closing its Middle Creek Road plant and eliminating 416 jobs early next year.
Layoffs are expected to begin Jan. 9 and the textile plant is to be closed by March 1, according to a notice sent to the state Department of Labor and Workforce Development.
Weaving capacity at Sevierville will be transferred to a plant in the company's hometown of Danville, Va.
The company has reported disappointing sales figures in recent weeks and has seen shares of its stock plunge from around $2 in late September to a Monday close of 92 cents on the New York Stock Exchange. Third-quarter financial results are scheduled to be discussed in a public conference call this morning.
Dan River makes packaged bedroom furnishings such as comforters, sheets, pillowcases, shams, bed skirts, decorative pillows and draperies, as well as woven cotton and cotton-blend fabrics for apparel. The company says it is the leading supplier of men's dress shirting fabrics in North America.
An "increasing flood of textiles and apparel from China and the Far East" is the primary reason for "significantly" lower demand for Dan River's products, the company's chairman and CEO, Joseph L. Lanier Jr., said in a statement.
"The decision to close the Sevierville plant was made reluctantly and only after careful consideration," Lanier stated. "I deeply regret the personal impact this has on our associates, their families and the community."
Dan River bought the Sevierville plant from The New Cherokee Corp. in 1997 for $65 million and employed 600 people at the time. Two years ago, the company transferred work to Sevierville when it closed operations in Georgia and South Carolina.
The plant was built in 1955 by Cherokee Textile Mills of Knoxville.
"They have been a great community company and we hate to lose them," said Allen Newton, executive director of the Sevier County Economic Development Council.
Newton and Sevier County Mayor Larry Waters met with plant officials Monday afternoon and asked the company to reconsider the closure.
"We have asked them to review everything and to see if there's anything - low-interest loans or anything - we could help them with that might help them stay in this area," Waters said.
"We told them we would be willing to take a look at anything. They said they would talk with (corporate headquarters) about that and get back with our economic development director."
The state Department of Labor said Monday it would begin the process of helping workers on Wednesday. State government observes the Veteran's Day holiday today.
"We'll begin working with Dan River Inc. to set up appointments to explain our services on Wednesday," department spokeswoman Milissa Reierson said.
"Because there are close to 400 people, what we'll probably do is have a meeting at a facility, explain the benefits, how to file for unemployment, explain other benefits that may apply, (such as) resume workshops, Career Center (programs), interviewing workshops, helping them apply for other jobs or training."
Workers at the Sevierville plant are not unionized, according to the company notice filed with the state.
Newton said the company will offer employees severance and assistance packages, but specifics were unavailable Monday. He also said Sevier County will work with the state on providing benefits to workers.
"Obviously today they have a little over 400 people employed," Waters said. "They said about 75 percent of those people actually live in Sevier County, so when you look at that number, it's certainly a significant loss to us."
After projecting improved sales in the second half of this year, Dan River reported in mid-October that sales fell 30 percent in the third quarter, down $43.7 million to $103.7 million. The company also projected negative fourth-quarter earnings before interest, taxes, depreciation and amortization.
Also in mid-October, the company said it had agreed to engage a financial adviser to review its fiscal 2004 projections and to help the company comply with credit requirements.
In addition to the Sevierville closing, the company said Monday it is closing a warehouse in Juliette, Ga., eliminating 27 jobs.
Business editor David Keim may be reached at 865-342-6311 or keim@knews.com
The only union that they actually hate is the one that Lincoln fought to preserve.
Willie is calling them as he sees them reported. But I am sure the Marines are looking for a few good men probably the Army too. A recent check of the Philadelphia paper showed the usual double digit demand for wait staff, nurses, and over the road drivers. What increases does your paper show?
Not quite sure what you are getting at here, but East Tennesse fought for the Union in the Civil War.
Oh well, here in NC we've got fourteen pages of companies looking for ex textile workers turned biotechnicians. You mean you don't have the same thing?
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