Passaic-based firm might shut down if Girl Scouts ends contract

30 Oct '10

2 min read

Jackie Evans Inc. – a local textile company of US might be forced to dismiss its 90 employees and close down if its only customer, The Girl Scouts of the USA, takes the decision to shift its business to China. The company has been manufacturing uniforms for the Girl Scouts since last 10 years. But the business could face serious challenges if the Girl Scouts gets better quality of products in lesser prices from a different manufacturing company.

According to the official sources of the Girl Scouts, the Passaic-based company is one of the four dealers from which it will seek quotation to manufacture the organization's uniforms and sashes. The vice-president and general manager for Girl Scouts merchandise – Barry Horowitz, said that two of these dealers are based in abroad and one in China.

The employees at the Passaic-based factory expressed concern about their future in case the Girl Scouts cancels its contract with the company, as it has been a source of income for several generations of local employees.

The Girl Scouts is under pressure due to increased expenditure and falling revenues. Towards the end of last year, the Girl Scouts declared that it had around $160 million in assets but the organization has seen a decline in its savings or short-term cash investment from US $13.6 million to $5.6 million between 2008 and 2009, as per the latest public financial reports. The organization has also registered a huge rise in the pension costs from around $1 million to $28 million.

Fibre2fashion News Desk-India

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