Apparel Company PVH to shut Ozark based sewing plant
08 Mar '06
2 min read
Apparel major Phillips-Van Heusen announced that it will permanently close its Ozark, Alabama, sewing plant by May 15.
The facility, which makes dress shirts, is currently responsible for approximately five percent of the company's dress shirt production, the rest of which is outsourced to factories abroad, the company said.
This is the last manufacturing facility that the Company operates.
Emanuel Chirico, Chief Executive Officer of Phillips-Van Heusen said that this was a difficult but inevitable decision based on the competitive environment in the apparel industry and the expiration of import quotas in 2005.
"They are very sorry to have to close the facility and they are committed to working with the local economic development authorities to do anything they can to help market this facility to other potential employers."
The closing will result in the elimination of approximately 500 jobs.
The company expects to incur severance and other costs related to the plant closure of approximately $10 million.
As a result of this decision, the company currently projects that annual savings of approximately $5 million will be realized in 2007.
Phillips-Van Heusen Corporation is one of the world's largest apparel companies.
It owns and markets the Calvin Klein brand worldwide.
It is the world's largest shirt company and markets a variety of goods under its own brands, Van Heusen, Calvin Klein, IZOD, Arrow, and G.H. Bass & Co, and its licensed brands Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, BCBG Max Azria, BCBG Attitude, MICHAEL Michael Kors, Sean Jean, Chaps, and Donald J Trump Signature Collection.
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