Thursday, September 2, 2010 | DeKalb County's Oldest Newspaper |
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Layoffs continue in sock industry
Published January 8, 2010
DeSoto Mills in Fort Payne will close, leaving 104 without jobs, a company official said Friday.
The announcement comes on the heels of the layoff of hundreds of workers from Cooper Hosiery in Fort Payne. DeKalb County Economic Development Agency Director Jimmy Durham said Thursday Cooper laid off about 269 workers in December.
John Shivel, Sr., vice president of communications for Fruit of the Loom – DeSoto’s parent company – said the company’s Fort Payne facility would begin permanently shutting down beginning on or around March 9. He said the mill would be completely closed by June 1.
He said the shutdown is the result of “continued consolidation efforts by the company to remain competitive in a global competitive market.” He said sales and support operations would be relocated to the company headquarters in Bowling Green, Ky., while distribution operations would be absorbed into the company’s other existing distribution centers.
“This decision is in no way a reflection on the dedication and efforts of the people in out DeSoto Mills operation,” said Robby Davis, vice president and general manager of DeSoto Mills. “This reflects our ongoing efforts to streamline operations and build on the synergy and strengths of the company, which is based in Bowling Green – we will be in discussion with people who will be asked to relocate as a part of this consolidation.”
Durham said he hopes DeKalb County is nearing “the end” of hosiery mill layoffs.
“We hate it for the workers and those involved in the layoff, but are keeping faith that the economy will turn around soon,” he said. “Even though this has a big negative impact, the positive side is that we do have a large, available workforce for companies that might want to locate here.”
Durham said, despite the downturn, some local hosiery companies – such as Renfro Hosiery – are “performing well.” He said there are plans for expansion at Renfro.
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