This report on recent downsizings is excerpted from Watch List, a weekly column of distressed commercial properties, mortgages and corporate news.
June 11, 2007
Prudential Financial Inc. plans to discontinue its institutional equity research, sales and trading business known as Prudential Equity Group. The decision affects the equity research operations throughout the U.S. including offices in New York, Washington, DC, San Francisco, Kansas City, Chicago, Philadelphia, Cleveland, Atlanta and Boston. The move will eliminate 420 jobs at 13 locations worldwide. Prudential Equity has its headquarters at One New York Plaza in New York, where Prudential leases more than 490,000 square feet.
Retailer Liz Claiborne plans to reveal initiatives of a strategic review of operations on July 11th. The review is in light of disappointing first quarter results, which included a 65% decline in earnings. Cutbacks are speculated to result in the loss of as many as 1,700 jobs, 10% of Liz Claiborne's existing workforce. Another initiative may result in selling off a business unit(s) or brand(s); aside from its own brand name, Liz Claiborne operates stores and holds several brands including Juicy Couture (27 stores), Lucky Brand (138 stores), Kate Spade (23 stores), Mexx (4 stores), Sigrid Olsen (55 stores), Laundry by Shelli Segal (two stores), Dana Buchman (four stores), Ellen Tracy and Emma James. By: Sasha M. Pardy.
The following future closures and mass layoffs were reported in Arizona.
SkillSoft Corp. is permanently laying off 153 employees at 14624 N. Scottsdale Road in Scottsdale between now and Aug. 15.
Motorola Mobile Devices is permanently laying off 79 employees at 2501 S. Price Road in Chandler starting July 27 and concluding by Aug. 10.
The following future closures and mass layoffs were reported in Florida.
Oceanfront Hotel plans to layoff 88 employees at 3200 N. Ocean Drive in Singer Island on Aug. 10
Badcock Home Furniture & More plans to layoff 39 employees at300 NW 4th Ave. in Mulberry on June 29.
Rite Aid plans to layoff 49 employees at7320 Bryan Dairy Road in Largo within the next year.
DiVosta Building Corp. plans to layoff 71 employees at10385 Ironwood Road in Palm Beach Gardens on July 31.
Sara Lee Bakery plans to layoff 99 employees at its warehouse at1820 W. 15th St. in Panama City on July 28.
The following future closures and mass layoffs were reported in Illinois.
AI Technologies is closing down at 666 S. Vermont St. in Palatine on June 25 affecting 50 employees.
Akzo Nobel Surface Chemistry LLC is closing at 8201 W. 47th St. in McCook on June 30 affecting 51 employees.
Blyth Homescents International sold its division at 99 Touhy Ave. in Des Plaines and is closing down on June 29 affecting 75 employees.
Catholic Charities of Chicago laying off at 651 West Lake St. in Chicago on June 30 affecting 157 employees.
J & L Industrial Supply is laying off at 2701 S. Busse Road in Elk Grove Village on July 27 affecting 52 employees.
Option One Mortgage is closing at 3800 Golf Road in Rolling Meadows on July 14 affecting 52 employees.
Target Store is relocating its store at 21600 S. Cicero Ave. in Matteson and laying off 115 employees on July 24.
Thresholds Rehabilitation Industries is closing at 1550 W. Carroll in Chicago on June 30 affecting 73 employees.
Westell Technologies Inc. is laying off at 750 N. Commons Drive in Aurora on 7/31/07 affecting 251 employees.
Kantar Operations is closing at 4705 44th St., Suite 1, in Rock Island on June 23 affecting 252 employees.
Exel is closing at 1263 Windham Parkway in Romeoville on July 15 affecting 57 employees.
First Student Inc. is closing at 900 Sak Drive in Crest Hill on June 30 affecting approximately 400 employees.
Visteon Connersville is closing down some operations in Connersville, IN, starting in July and concluding by Aug. 3 affecting approximately 111 employees.
The following future closures and mass layoffs were reported in Michigan.
Tarpon Industries Inc., a manufacturer and distributor of engineered steel storage rack systems, and structural and mechanical steel tubing based in Marysville, MI, implemented a cost reduction program which included, among other things, the layoff of 37 of its 145 production workers and 21 of its 43 salaried employees.
Simplicity Pattern Company Inc. announced a mass lay off on May 23 affecting 90 in Niles (layoff dates and specific addresses were not provided).
Plastech announced a mass lay off on May 18 affecting 138 in Fowlerville (layoff dates and specific addresses were not provided).
Kimball Electronics announced a mass lay off on May 18 affecting 214 in Gaylord (layoff dates and specific addresses were not provided).
Clarion Technologies announced a mass lay off on May 21 affecting 45 in Greenville (layoff dates and specific addresses were not provided).
Deco Engineering Inc. announced a mass lay off on May 23 affecting 75 in Royal Oak (layoff dates and specific addresses were not provided).
Industrial Rubber Goods announced a mass lay off on May 31 affecting 80 in St. Joseph (layoff dates and specific addresses were not provided).
The following future closures and mass layoffs were reported in Missouri.
Transamerica Occidental Life plans to lay off 387 in Kansas City and vicinity due to office closures by the end of this year (no specific addresses were identified).
O'Sullivan Industries Inc. is laying off 735 employees on July 7 due to closure of its plant at 1900 Gulf St. in Lamar.
Northrop Grumman plans to lay off 265 employees in Springfield due to plant closure on July 18 (no specific address was identified).
The following future closures and mass layoffs were reported in Ohio.
Wellpoint Inc.'s Precision Rx Specialty Pharmacy division is relocating from its operations at 4605 Duke Drive in Mason, affecting 81 employees effective Aug. 1.
Pennzoil-Quaker State Co. d/b/a SOPUS Products, will be ceasing operations at the Blue Coral Car Care facility at 5700 S. Lee Road in Maple Heights. Suppliers in the Midwest region will be assuming the manufacturing of products from the Cleveland plant and the storage and distribution will be managed locally by a third party logistics provider. As a result, 104 full-time employees will permanently be laid off. The layoffs are anticipated to occur between July 30 and Nov. 30.
Johnson Controls Inc. is closing its Oberlin plant at 450 Stern St. on Aug. 3 affecting 145 employees. Some affected employees will continue to be employed at the plant for a period of time following the plant closing.
Leiner Health Products Inc. plans to consolidate its manufacturing and packaging operations in Fort Mill, SC, by the end of September 2007 into other company facilities. Although the Fort Mill facility will continue to distribute products to customers, Fort Mill’s manufacturing assignments will be transitioned to the company’s Wilson, NC and Garden Grove, CA, facilities, and its packaging operations will be transitioned to the company’s Carson, CA, facility. The company will continue to manufacture OTC products in its Wilson facility.
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