Canadian apparel firm Gildan Activewear is set to cut about 80 jobs as it shutters its facility in Clarence, New York and consolidates the plant’s screen-printing operations in Central America.
News of the closure comes less than two years after Gildan acquired the property and its operating affiliate in Honduras—where the company also has textile manufacturing and sewing facilities—for $7 million from New Buffalo Shirt Factory Inc.
Genevieve Gosselin, Gildan’s director of corporate communications, told Buffalo News that layoffs will begin on June 1 and the factory will close its doors on Aug. 1. Severance packages and employment assistance will be offered to affected workers. Gosselin said the change will help the company “achieve a more efficient supply chain.”
The Montreal-based company is one of Canada’s largest apparel firms and its portfolio of brands includes Gildan, Goldtoe, Anvil, Silks, Secret, Kushyfoot and Therapy Plus, as well as licenses for Under Armour, Mossy Oak and New Balance. Gildan owns and operates several vertically-integrated, large-scale manufacturing facilities, primarily in Central America, the Caribbean Basin and Bangladesh, and had more than 37,000 employees worldwide as of Mar. 31, 2014.
The Clarence closure isn’t the end of the company’s U.S. manufacturing base; Gildan owns several yarn-spinning facilities in North Carolina and Georgia and a $142-million plant currently under construction in Mocksville, NC, will employ nearly 300 people when it opens in 2016.