Handbag maker Vera Bradley's suppliers to close, lay off workers
FORT WAYNE, Ind. (WANE) - Vera Bradley Designs, Inc., headquartered in Fort Wayne, has announced the closing of three local manufacturers that supply products for the company.
Phoenix Sewing, located at 9823 Indianapolis Road will permanently layoff 190 employees. Summit Production Systems, located at 1530 Progress Road in Fort Wayne, will layoff 200 employees and Mercury Manufacturing, located on Marciel Drive in Fort Wayne will layoff 147 employees.
The closings are attributed by Vera Bradley to its decision to consolidate all of its domestic production in-house.
The layoffs will begin as early as mid-May with completion expected in September.
A fourth supplier in Van Wert, Ohio, KAM Manufacturing, will also be shut down by the move.
The companies have been supplying Vera Bradley for years.
A press release issued by the company did not indicate if the consolidation would result in the addition of any jobs at its Fort Wayne facility located off I-69 near the General Motors plant in southwest Allen County.
A spokesperson for the Vera Bradley told Newschannel 15 the move comes as the company is vertically integrating to streamline operations.
The spokesperson said the move will result in the creation of many of the same jobs at the facility, and that preferential treatment will be given to the laid off workers to fill the positions.
The company is working Manpower to establish a phoneline solely for workers affected by the consolidation.
City officials have been notified of the news.
"We are hearing that the domestic capacity, the folks working and the domestic capacity is expcted to stay the same, if not grow. Certainly, we're not oblivious to some of the potential downfalls, obviously there are no guarantees that the impacted workers will be offered positions at the company," said Rob Young, President of the Fort Wayne/Allen County Economic Development Alliance.
Young said the city will be monitoring relations throughout the company's transitional period and making sure resources are available for the workers affected.
Vera Bradley was founded in 1982 and manufactures quilted cotton luggage, handbags and accessories.
Phoenix Sewing, located at 9823 Indianapolis Road will permanently layoff 190 employees. Summit Production Systems, located at 1530 Progress Road in Fort Wayne, will layoff 200 employees and Mercury Manufacturing, located on Marciel Drive in Fort Wayne will layoff 147 employees.
The closings are attributed by Vera Bradley to its decision to consolidate all of its domestic production in-house.
The layoffs will begin as early as mid-May with completion expected in September.
A fourth supplier in Van Wert, Ohio, KAM Manufacturing, will also be shut down by the move.
The companies have been supplying Vera Bradley for years.
A press release issued by the company did not indicate if the consolidation would result in the addition of any jobs at its Fort Wayne facility located off I-69 near the General Motors plant in southwest Allen County.
A spokesperson for the Vera Bradley told Newschannel 15 the move comes as the company is vertically integrating to streamline operations.
The spokesperson said the move will result in the creation of many of the same jobs at the facility, and that preferential treatment will be given to the laid off workers to fill the positions.
The company is working Manpower to establish a phoneline solely for workers affected by the consolidation.
City officials have been notified of the news.
"We are hearing that the domestic capacity, the folks working and the domestic capacity is expcted to stay the same, if not grow. Certainly, we're not oblivious to some of the potential downfalls, obviously there are no guarantees that the impacted workers will be offered positions at the company," said Rob Young, President of the Fort Wayne/Allen County Economic Development Alliance.
Young said the city will be monitoring relations throughout the company's transitional period and making sure resources are available for the workers affected.
Vera Bradley was founded in 1982 and manufactures quilted cotton luggage, handbags and accessories.
Labels: Indiana, Indianapolis, layoffs, Vera Bradley Designs
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