Oneida Ltd., which makes crystal, glassware, dinnerware, flatware and metal serveware for the domestic and catering markets said 9 September 2004 that it will close its remaining factory in New York s…
Oneida Ltd., which makes crystal, glassware, dinnerware, flatware and metal serveware for the domestic and catering markets said 9 September 2004 that it will close its remaining factory in New York state early in 2005, ending all its manufacturing of flatware because of high operating costs. The decision will lead to the loss of around 500 jobs, including manufacturing and managerial positions. Oneida said the high operating costs of its flatware factory in Sherrill, near Syracuse, caused substantial losses. Oneida plans to continue marketing the products affected by the closure by switching to 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 closure, mainly at its corporate HQ and warehouse and distribution centers. The company employs about 1,200 people worldwide. The announcement came as the company reported on 9 September 2004 a 2Q 2004 net loss of USD 48.3 million which included non-recurring charges of about USD 45.5 million. The non-recurring charges, in addition to the plant closure charges, involved inventory writedowns and other expenses related to the sale of the Encore Promotions, Inc. subsidiary. In June 2004, the company reached a tentative deal with its lenders on a restructuring plan and USD 30 million in new revolving credit to help avoid bankruptcy. Oneida lost USD 99.2 million in 2003. As a result, the company closed or sold five manufacturing facilities and now buys most of its china, glassware and flatware from other companies to resell under the Oneida brand name.