Gildan Cuts 400 Jobs at Ala., Va. Apparel Plants
Canadian apparel maker Gildan Activewear Inc. says it will shift its U.S. sock finishing work to Honduras, eliminating 220 jobs at Fort Payne, Ala., known as the "Sock Capital of the World." It also is closing a Virginia knitting plan with 180 employees.
The decision Thursday idles workers at Cherokee Finishing and Plainsman Finishing operations in Fort Payne. Those operations and the Virginia plant will close by February 2009. Gildan, based in Montreal, Canada, blames the rapid and severe downturn in overall economic conditions during October and November and increased global competition in socks.
In a statement, Gildan says there are no current plans to relocate sock knitting operations in Fort Payne. Jimmy Durham, the head of the DeKalb Economic Development Authority, said Thursday the county has lost about two-thirds of its 6,000 jobs in the sock industry since 2005, dropping to about 2,200.
Durham said the county's recovery strategy is to become a distribution center for socks produced in foreign plants, having them shipped back from Honduras in containers through Mobile, then to Fort Payne. "It won't be anywhere near the number of jobs we've had," he said.
The decision Thursday idles workers at Cherokee Finishing and Plainsman Finishing operations in Fort Payne. Those operations and the Virginia plant will close by February 2009. Gildan, based in Montreal, Canada, blames the rapid and severe downturn in overall economic conditions during October and November and increased global competition in socks.
In a statement, Gildan says there are no current plans to relocate sock knitting operations in Fort Payne. Jimmy Durham, the head of the DeKalb Economic Development Authority, said Thursday the county has lost about two-thirds of its 6,000 jobs in the sock industry since 2005, dropping to about 2,200.
Durham said the county's recovery strategy is to become a distribution center for socks produced in foreign plants, having them shipped back from Honduras in containers through Mobile, then to Fort Payne. "It won't be anywhere near the number of jobs we've had," he said.