Posted on 09/11/2004 3:01:29 PM PDT by Willie Green
For education and discussion only. Not for commercial use.
ONEIDA, N.Y. - Dishware maker Oneida Ltd. said Thursday it will close its remaining factory in upstate New York early next year, ending all its manufacturing of flatware because of high operating costs.
The decision will cost about 500 workers their jobs, including manufacturing and managerial positions.
Oneida said high operating costs of its last flatware factory in Sherrill, near Syracuse, caused substantial losses. Oneida plans to continue marketing the affected products by using independent suppliers.
"For the long-term viability of our company, closing the factory dramatically lowers our costs which will help return Oneida to profitability," chairman and chief executive Peter Kallet said.
About 400 jobs will remain in the Oneida area following the last factory closing, mostly at its corporate headquarters and warehouse and distribution centers. The Oneida-based company employs about 1,200 people worldwide.
The announcement came as the company reported a second quarter net loss of $48.3 million on Thursday including non-recurring charges of about $45.5 million.
The non-recurring charges, in addition to the factory closing expenses, involved inventory writedowns and other expenses related to the sale of the Encore Promotions, Inc. subsidiary.
In June, the company reached a tentative deal with its lenders on a restructuring plan and $30 million in new revolving credit to help avoid bankruptcy.
Oneida lost $99.2 million last year. As a result, the company closed or sold five factories and now buys most of its china, glassware and flatware from other companies to resell under the Oneida brand name.
Thank you New York State.
I hope that reply didn't take a lot of work, or that you typed it one someone else's computer, or that we paid for you to do so, or that responding to it is limited by the government. We conservatives need to look out for each other.
Okay, how about Fiestaware? Fully domestic, running at full capacity and unable to meet demand.
Lessee, two companies, both in the same space, one slowly going belly up and the other going gangbusters.
Ah, wait, now I see the solution. Pass a law and MAKE people buy Oneida stuff.
The fault, dear Brutus.....
Precisely! That why I now advocate no trade policies, to keep America''s markets fair. The status quo is always the way to go and yes, us "conservatives" do need to stick together. Care to join the "new" me?
Absolutely. As I mentioned on another thread, we can always make-up that $300 billion in exports by raising inflation in the domestic market. It is possible to sell less for more, as you know.
Most of my family works for a textile mill. SC used to be full of them but of course one is closing after another. One family member lost his mill job last year and is incredibly bitter.
I suggested that he move because the town is dead. There is no work. Most people live there but work in other counties now. You would've thought that I had said move to Mars or that his mother was ugly. I had to change to subject and left the room quickly.
He's still back in Union, still angry. He's living off his wife's paycheck from Walmart and is getting fat and drinking too much beer. If he had left for NC or Atlanta last year he might be in better shape. As it is now, his kids are miserable and his wife is eyeing the back door and her suitcase. I don't want this country to turn into a mass of Tom Joads but sometimes you gotta go where the money is.
I was being a little facetious. But feel free to go to take it to extremes.
Yes. I have Oneida stainless also. I'm glad we have all that. You had better stock up because quality will suffer when they send it overseas to be manufactured. Also the price doesn't come down any either. You pay the same or more for lesser quality. We have crystal from Lenox that was given to us as wedding presents. Lenox is now produced in China and the quality has suffered. If you place a new piece side by side with the old, it is obvious which is which. Old is much more delicate and thinner. New is chunky and thick.
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