Another Springs plant heads south
January 6, 2009,
Atlanta — Springs Global will begin winding down towel finishing and distribution at its Griffin, Ga., plant by the end of February and expects to shut down the operation by April 14, the company disclosed in a WARN Act notification to state labor officials here.
Over the last year-and-a-half, Springs has shut down most U.S. production, crated up the equipment and moved it to Brazil, Argentina and Mexico in a bid to cut costs.
Springs most recently reported that third-quarter net sales fell more than 32% to about USD$409 million, while cutting its net loss to about USD$34 million for the quarter. At the same time, ceo Josue Gomes da Silva promised more cost cutting as the company renews efforts to grow top-line sales.
Springs made the notification to state authorities in mid-December. Labor Department officials posted the notification yesterday following an inquiry by HTT. The WARN Act requires companies with 100 or more employees to provide a minimum of 60 days advance notice of pending plant or business closures.