Riverside To Close Cut/Sew Factory, Laying Off 140 People
“We worked diligently for many months to secure new contracts that required ‘Made in USA’ garments. However, a recent volume reduction in our largest federal government uniform program made the costs of domestic production unsustainable,” said Lisa V. Zeanah, Riverside chief executive officer.
The news was broken to employees Tuesday.
Zeanah said the closing will complete the transition of Riverside’s production of uniforms and apparel to contractor partners.
“We have decided to close our remaining domestic production facilities and move this volume to our established contractor partners. We value the dedication and long-term commitment our employees have shown over the years, but at present we have exhausted our options to keep Riverside employees sewing garments in he USA,” she added.
Zeanah, daughter of former Riverside CEO Jerry Vereen, said senior management, customer service, website design, product development, supply chain management, marketing, accounting and quality control laboratory testing will continue at the Moultrie headquarters at 301 Riverside Drive.
Zeanah said it was a difficult decision but that the company felt that consolidating production into fewer facilities will improve “our ability to manage our supply chain and will position Riverside for solid growth for many years to come.”
She added, “We hope that the community will support the affected employees as they transition into other work. We are coordinating with our local Department of Labor to provide assistance.”
Darrell Moore, executive director of the Colquitt County Development Authority, said, “Riverside has been a cornerstone of the Colquitt County community for more than 100 years. They have provided stable employment opportunities for our citizens and have been a model corporate citizen. Our community will do everything we can to support Riverside as they work through this transition and will be there to help them maintain their operations in Moultrie.”
Founded by and managed by the Vereen family for over a century, Riverside has provided work wear and protective apparel in the U.S. In addition to Moultrie, Riverside owns and operates facilities in Atlanta and the Dominican Republic. Additional information about Riverside can be found at www.RiversideUniforms.com and www.RiversideFR.com.
Am I reading to much into this or is this one of the first examples for fallout from the announced reduction in the size of our military? How many in management will loose their jobs? What type of concessions would management offer (ie lower bonuses, lower stock options, etc) to keep their 140 US workers employed and working in the United States? This sounds like just another excuse to justify moving another group of US jobs overseas for cheap labor.