AM I NEXT? NO LOVE -- UNANNOUNCED SHUT DOWN AT WOOD-MODE CABINETRY (UPDATED)

OCTOBER 1, 2019 — GOOD NEWS. COMPANY RE-OPENS AND HIRES 235 FORMER WORKERS.

Wood-Mode, purchased a few months ago by Middleburg, Pennsylvania-based Professional Building Systems has announced that it has hired back 235 former employees since restarting operations a month ago. However, wage levels have dropped by 8 to 10 percent. The company intends to hire additional workers as it clears the pending backlog of orders and seeks to reestablish the company’s reputation for reliability.

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Kreamer, Pennsylvania-based Wood-Mode, Inc., a family-owned manufacturer of fine wooden cabinetry, has abruptly shut down operations and laid off all 938 employees without notice. The company’s decision to cease operations was apparently triggered by the failure to find an investor or purchaser for the company. A company spokesperson told employees “All of us are extremely appreciative for your contributions. We would like to thank you for your commitment and service to Wood-Mode throughout the years.” The ripples in the retail cabinetry market and construction industry were widely felt, with some projects facing indefinite delays while contracts seek replacement sources and retailers find alternative options for their customers. For some retailers that devoted their operations to showcasing Wood-Mode products, they are effectively out of business. Hundreds of additional workers may lose their jobs as the impact ripples through the industry.

The real tragedy is that the employees lost their insurance coverage and it is unknown whether or not pensions and benefits were involved.

Hope is still alive as some believe that a consortium of the state of Pennsylvania, retailers, contractors, and others may attempt to re-open the facility. A local investment firm is said to be attempting to purchase the private company’s assets from family owners and has asked for a commitment from employees to buy stock in a new company.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere ... are you now wondering, Am I Next?

AM I NEXT? NO LOVE -- LAYOFFS AT POST'S WEETABIX CEREAL PLANT

Brentwood, Missouri-based Post Holdings, the packaged foods company with several iconic brands, has announced that the closing of their 235,000 square-foot cereal manufacturing facility located in Clinton, Massachusetts and the layoff of 181 employees. The facility, acquired in 2017 produces the Weetabix line of whole grain wheat breakfast cereals.

The company’s operations will be transferred to other Post facilities. Dave McBeain, senior vice president of Post supply chain and operations noted, “By leveraging our broad network capabilities, we can keep our costs as low as possible for continue growth in both traditional and natural/organic cereal.”

This should not come as a surprise to employees as the company announced the plant’s closure and anticipated sale of the property on February 27, 2018.

A company spokesperson explained, “The planned closure of the facility reflects Post’s continuous improvement initiative to optimize its cereal production network and manage costs in the ready-to-eat cereal category.

The facility, which was acquired with the $1.8 billion acquisition of Weetabix on July 3, 2017, employs approximately 180 employees and is expected to close by August 2019. Post will engage in discussions with the union representing the hourly employees at the Clinton facility to determine the impact to terms and conditions of employment for the unionized workers. Affected employees have been notified.”

The cold cereal industry is undergoing a change in consumer purchasing preferences and patterns and the industry sales of cereal products has been dropping over ten percent in the past five years. Few consumers have failed to note the dramatic increase in cereal pricing by Post, Kellogg, and General Mills.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere ... are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT ALLESON ATHLETIC

Henrietta, New York-based Alleson Athletic, a manufacturer and printer of stock and customized athletic uniforms, will cease manufacturing operations at its Henrietta plant in the near future according to a WARN (Worker Adjustment and Retraining Notification) notice. Approximately 129 employees will lose their jobs, although some customer service positions will be spared.

The company, acquired by Statesville, North Carolina-based Badger in 2017 is said to be part of a restructuring operation.

Badger Sportswear was roundly criticized for its connections to a Chinese apparel vendor which was alleged to be using slave labor from an internment camp according to an Associated Press investigation. The company has severed it connection with the firm, but lost business in the process.

CCMP Capital Advisors acquired a controlling interest in Badger Apparel in 2016 and appears to be using Badger as a vehicle to dominate school uniform sales.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere ... are you now wondering, Am I Next?