This entry was posted on Tuesday, April 17th, 2007 at 6:29 am and is filed under Economic Development, General News. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.
Smart Workforce Solutions
Business Services from the Missouri Career Centers of Joplin and Monett
O’Sullivan Industries Announces Closure
Officials with O’Sullivan Industries in Lamar announced their plant closure. More than seven hundred employees would be affected by the closure. The Workforce Investment Board is allocating extensive resources through the Missouri Career Center’s Rapid Response Team to assist the community and affected workers with workforce/economic recovery efforts. Following a meeting with community leaders, the team will develop an array of strategies, which might include securing additional grant resources through the U.S. Department of Labor and the Missouri Division of Workforce Development.
The press release issued Monday by O’Sullivan Industries reads as follows:
O’Sullivan Industries, Inc. (O’Sullivan) announced today that is has commenced an orderly wind down of its business and will be closing its lamar, Missouri plant as soon as July 2007, and no later than October 2007. O’Sullivan has reached an agreement with Sauder Woodworking Company of Archbold, Ohio, under which Sauder will purchase certain O’Sullivan assets, including O’Sullivan product designs and the O’Sullivan trademark. During a short transition period following this sale, O’Sullivan will manufacture product for Sauder, which Sauder will then sell to O’Sullivan customers.
O’Sullivan’s decision to cease operating came after months of diligent efforts by O’Sullivan and its board of directors to restructure its debts and maintain its business as a going concern, either through the refinancing of its senior loans or the sale of the company. Discussions with potential deal partners have now ended, so O’Sullivan is turning its attention to winding down its operations in an orderly manner with the lowest possible impact on the company’s vendors, customers, and employees. O’Sullivan believes its arrangement with Sauder represents the best opportunity to do so. The agreement has the support of O’Sullivan’s senior lender.
O’Sullivan expects that some of its approximately 735 employess will be let go immediately. Some employees will remain during the transition period while O’Sullivan continues to manufacture product for Sauder. All of O’Sullivan’s remaining employees will be terminated no later than the end of the transition period. O’Sullivan has provided notice of these layoffs to the employees and appropriate state and local agencies as required by federal law.
Any comments or questions regarding this announcement should be directed to Paul Britton, O’Sullivan’s Plant Manager, at (417) 682-8256.