Perry Manufacturing laying off 149 workers
Tom Joyce
Staff Reporter
Another chapter in an all-too-familiar story was written Wednesday when the layoff of nearly 150 employees of Perry Manufacturing Co. was announced.
Personnel at the company headquarters in Mount Airy Industrial Park, located off Carter Street, were assembled for a meeting about 9:30 a.m. and told that 149 jobs would be terminated there effective April 7. Problems linked to a company contract with Lands' End hastened the decision, sources said.
*
Overall, about 180 people work at the facility that employs office, engineering and distribution personnel, among others. Samples are the lone items actually produced by the local operation now. Only a core group of employees will remain at the Mount Airy facility that was launched in 1950 by the late William K. Woltz Sr.
“I won't say a skeleton crew, but there will be a much smaller group left as we try to work through this situation,” said William K. Woltz Jr., who now heads the company.
Perry Manufacturing is believed to have 4,000 employees at both domestic and overseas locations. Most of the local jobs reportedly are being moved offshore, continuing a recent pattern that has caused the loss of more than 1,000 textile positions in Mount Airy in just the last year.
Plant closures and major downsizings have led to layoffs by Gildan Activewear Inc., Spencer's Inc., Renfro Corp and Cross Creek Apparel since early 2007. In December, Surry County's unemployment rate rose to 6.1 percent, its highest level in three years.
Woltz said Wednesday that the downsizing of the Mount Airy operation “is due to the current financial crisis in the United States and unrelenting competition from the Far East.”
“And we're sorry about it,” the company official added of the layoff.
Perry Manufacturing employees who were interviewed about the move that it was not unexpected, especially considering the trend of other textile layoffs in Mount Airy. However, the news is hard to accept, just the same, they say.
“I know there are a lot of people that are going to lose their homes and everything,” said one of the workers being displaced, “because there's nothing left in Mount Airy.”
That worker, who spoke on condition of anonymity, said she also has an uncertain outlook as a single mother in her mid-30s - with mortgage and car payments. She is hoping to somehow find other work soon. “I've been there about six years,” she said of her job with Perry.
Rumors that such an event would strike Perry Manufacturing's work force had swirled for weeks, according to two other employees leaving the company parking lot during lunch Wednesday. They confirmed that their positions are among ones being eliminated.
“I mean, it's going to be rough, but there is unemployment,” said one of the two, an 11-year office employee at Perry Manufacturing who asked that her name not be published. She was philosophical about the layoff and its impact. “One door shuts, another one opens,” she said.
Going back to school was among the options suggested by the pair.
Todd Harris, a member of the Mount Airy Board of Commissioners, said Wednesday night that the latest announcement is a “clarion call” to local officials to be more vigilant about economic development.
“I wish it didn't happen, but it did,” Harris added. ‘There's certainly nothing positive about it.” The current economic situation reinforces a view long held by Harris that “we should be proactive rather than reactive about industrial recruitment.”
“It just means that we've got to change the way we do industrial recruitment,” said Harris.
Problems With Lands' End Contract
Relying on a network of production facilities and contractors throughout Central America, the Caribbean, Asia, Africa and the Middle East, Perry Manufacturing Co. produces knit and woven clothing. It specializes in women's and misses' outerwear, including suits and coats, with customers including Lands' End and Liz Claiborne. The company also has maintained facilities in Miami and Dallas.
One employee said Wednesday that the local layoff is a result of “bad management” regarding a contract with Lands' End, for which Perry has manufactured such products as tie-dyed polo shirts. Perry is said to have had a $56 million contract with that retailer.
The contract included supplying winter-oriented products to Lands' End, which later canceled an order for merchandise due to a less-than-expected demand and other problems, according to the worker.
“When you order something, you're supposed to take it,” the employee said. Company officials, however, allowed the shipments to be canceled. “They just let them drop the order, and it's put them in financial despair.”
As a result of that situation, Lands' End shipped the clothing items back to the local company. “They're coming in by the truckloads,” she said. Since Lands' End tags already have been sewed into the garments, “what can they do with them?” she said of Perry Manufacturing's options regarding the returned products.
Another source said that the problem with Lands' End was not solely responsible for the local job losses, but hastened the move.
For his part, Woltz declined to specify Wednesday the role the Lands' End contract played in the layoff announcement.
“We really can't comment on those kinds of things,” the Perry Manufacturing official said. “As you can well imagine, this is a fluid situation.”
In October 2004, Perry Manufacturing turned to McColl Partners, a financial advisory firm, for a debt-restructuring program.
Reverberations from company financial problems are being felt at its other facilities as well.
“We have reduced our office in Dallas significantly,” Woltz said, “and we're reducing our Hong Kong office.”
“Our offshore facilities are running full.”
When asked if Perry Manufacturing will continue to maintain some presence in Mount Airy, Woltz replied, “I would certainly hope so.”
“I live here.”
Contact Tom Joyce at tjoyce@mtairynews.com, or at 719-1924.
Staff Reporter
Another chapter in an all-too-familiar story was written Wednesday when the layoff of nearly 150 employees of Perry Manufacturing Co. was announced.
Personnel at the company headquarters in Mount Airy Industrial Park, located off Carter Street, were assembled for a meeting about 9:30 a.m. and told that 149 jobs would be terminated there effective April 7. Problems linked to a company contract with Lands' End hastened the decision, sources said.
*
Overall, about 180 people work at the facility that employs office, engineering and distribution personnel, among others. Samples are the lone items actually produced by the local operation now. Only a core group of employees will remain at the Mount Airy facility that was launched in 1950 by the late William K. Woltz Sr.
“I won't say a skeleton crew, but there will be a much smaller group left as we try to work through this situation,” said William K. Woltz Jr., who now heads the company.
Perry Manufacturing is believed to have 4,000 employees at both domestic and overseas locations. Most of the local jobs reportedly are being moved offshore, continuing a recent pattern that has caused the loss of more than 1,000 textile positions in Mount Airy in just the last year.
Plant closures and major downsizings have led to layoffs by Gildan Activewear Inc., Spencer's Inc., Renfro Corp and Cross Creek Apparel since early 2007. In December, Surry County's unemployment rate rose to 6.1 percent, its highest level in three years.
Woltz said Wednesday that the downsizing of the Mount Airy operation “is due to the current financial crisis in the United States and unrelenting competition from the Far East.”
“And we're sorry about it,” the company official added of the layoff.
Perry Manufacturing employees who were interviewed about the move that it was not unexpected, especially considering the trend of other textile layoffs in Mount Airy. However, the news is hard to accept, just the same, they say.
“I know there are a lot of people that are going to lose their homes and everything,” said one of the workers being displaced, “because there's nothing left in Mount Airy.”
That worker, who spoke on condition of anonymity, said she also has an uncertain outlook as a single mother in her mid-30s - with mortgage and car payments. She is hoping to somehow find other work soon. “I've been there about six years,” she said of her job with Perry.
Rumors that such an event would strike Perry Manufacturing's work force had swirled for weeks, according to two other employees leaving the company parking lot during lunch Wednesday. They confirmed that their positions are among ones being eliminated.
“I mean, it's going to be rough, but there is unemployment,” said one of the two, an 11-year office employee at Perry Manufacturing who asked that her name not be published. She was philosophical about the layoff and its impact. “One door shuts, another one opens,” she said.
Going back to school was among the options suggested by the pair.
Todd Harris, a member of the Mount Airy Board of Commissioners, said Wednesday night that the latest announcement is a “clarion call” to local officials to be more vigilant about economic development.
“I wish it didn't happen, but it did,” Harris added. ‘There's certainly nothing positive about it.” The current economic situation reinforces a view long held by Harris that “we should be proactive rather than reactive about industrial recruitment.”
“It just means that we've got to change the way we do industrial recruitment,” said Harris.
Problems With Lands' End Contract
Relying on a network of production facilities and contractors throughout Central America, the Caribbean, Asia, Africa and the Middle East, Perry Manufacturing Co. produces knit and woven clothing. It specializes in women's and misses' outerwear, including suits and coats, with customers including Lands' End and Liz Claiborne. The company also has maintained facilities in Miami and Dallas.
One employee said Wednesday that the local layoff is a result of “bad management” regarding a contract with Lands' End, for which Perry has manufactured such products as tie-dyed polo shirts. Perry is said to have had a $56 million contract with that retailer.
The contract included supplying winter-oriented products to Lands' End, which later canceled an order for merchandise due to a less-than-expected demand and other problems, according to the worker.
“When you order something, you're supposed to take it,” the employee said. Company officials, however, allowed the shipments to be canceled. “They just let them drop the order, and it's put them in financial despair.”
As a result of that situation, Lands' End shipped the clothing items back to the local company. “They're coming in by the truckloads,” she said. Since Lands' End tags already have been sewed into the garments, “what can they do with them?” she said of Perry Manufacturing's options regarding the returned products.
Another source said that the problem with Lands' End was not solely responsible for the local job losses, but hastened the move.
For his part, Woltz declined to specify Wednesday the role the Lands' End contract played in the layoff announcement.
“We really can't comment on those kinds of things,” the Perry Manufacturing official said. “As you can well imagine, this is a fluid situation.”
In October 2004, Perry Manufacturing turned to McColl Partners, a financial advisory firm, for a debt-restructuring program.
Reverberations from company financial problems are being felt at its other facilities as well.
“We have reduced our office in Dallas significantly,” Woltz said, “and we're reducing our Hong Kong office.”
“Our offshore facilities are running full.”
When asked if Perry Manufacturing will continue to maintain some presence in Mount Airy, Woltz replied, “I would certainly hope so.”
“I live here.”
Contact Tom Joyce at tjoyce@mtairynews.com, or at 719-1924.
Labels: layoffs, Perry Manufacturing
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