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[Sep 2005]
Lenox to Cease Fine China Production in Pomona
Department 56 Inc (Eden Prairie, MN, USA) says that its subsidiary Lenox Inc - the acquisition of which from Brown-Forman was completed on 1 September 2005 - intends to close the production of fine china at the Pomona, NJ, USA plant commencing on 14 November 2005. In addition, the company will close 31 of its Lenox retail stores, while 30 stores will continue operating.
Fine ivory china dinnerware production at Pomona has, according to the company, been declining over the past 10 years as consumer trends have shifted from ivory to bone china and from formal to upscale casual dinnerware. The plant has apparently been operating at a very low percentage of its capacity during the past several years.
Only china manufacturing operations will be affected at Pomona. Approximately 100 positions involved in Gorham sterling flatware production - as well as technical services, customer service and retail store operations - will not be impacted by the closing of fine china production at Pomona.
The china dinnerware production currently undertaken at Pomona will be relocated to the company's plant in Kinston, NC, USA which has the capability of manufacturing ivory and bone. The consolidation is made possible by the sourcing of some of the newer upscale casual products from offshore vendors. The company expects to incur approximately US$1.5 million in expense associated with this action during the fourth quarter of 2005.
In all, the actions will result in the loss of around 530 jobs - 290 at Pomona and 240 at the retail stores. Affected employees, both full- and part-time, will be provided with severance benefits, outplacement services and state assistance with employment transitioning.
ENDS