Two of the major players in the apparel industry announced plans to
close down redundant factories in the hopes of lowering costs last
week. For VF Corp., the redundancy comes in the form of RP Printing, a
screen printing company that it acquired when it picked up Majestic
Athletic in February. A VF official told the AP that the company
plans to close RP Printing in six to nine months, resulting in the
termination of 80 employees. The work done by RP will be reassigned to
other VF plants in the U.S., particularly one in Tampa, Fla., home of
VF Imagewear.
Meanwhile, Hanesbrands Inc. announced that it will close nine plants in
four countries, in addition to reducing worldwide management and
administrative jobs as part of a multi-year effort the company began
when it was spun off by Sara Lee in September 2006 to consolidate
manufacturing and reduce costs. The company will close plants and
operations affecting nearly 5,000 employees in Canada, the Dominican
Republic, Mexico and the United States and Puerto Rico, while moving
production to lower-cost operations in Central America and Asia. In
addition, approximately 350 management and administrative positions
will be eliminated, with the majority of these positions based in the
United States.
