Everlast Worldwide Inc. announced on Friday that it will close its Bronx, NY manufacturing facility and move the operations to its Moberly, MO plant. EVST plans to see a one-time Q4 pre-tax restructuring charge of approximately $1.7 million, with about $1.1 million charged on a non-cash basis.
The Bronx facility is expected to close in December 2003 and will affect approximately 100 employees.
The company is estimating savings of approximately $2.8 million from the consolidation of the operations. The lease of the Bronx facility runs through 2004, but the company said they were notified that “lease renewal would contain significant lease escalation costs” that would more than double the rent.
