Block Corp. to lay off 120 starting Jan. 1
BY DENNIS SEID
Daily Journal
TUPELO - Apparel maker Block Corp. is laying off more than half of its employees, starting Jan. 1.
The company's senior vice president of operations, Jim Beisel, said the 120 layoffs of distribution and warehouse workers would be completed by the end of January.
The battered economy - and sinking retail sales - had everything to do with the decision, Beisel said.
"Specifically, it was the retail climate, which has been especially difficult," he said. "It's been a difficult year, and it's affecting us."
Retailers are expected to report the weakest performance for October since at least 1969. Michael P. Niemira, chief economist at the International Council of Shopping Centers, told the AP last week that he expects same-stores sales to fall 0.5 percent.
And department stores and apparel stores have been hit hard as consumers have pulled back on spending.
Block's layoff comes not long after Lanier Clothing's announcement in August that it was shutting down its Tupelo operations by December, leaving 46 people without jobs.
However, Block - which consolidated its Amory and Columbus operations to Tupelo three years ago - will maintain about 100 workers at its West Main Street facility.
Also, Beisel said the Block retail store would remain open.
"These are fine people, which is one of the reasons why we chose to come to Tupelo," Beisel said. "I can't say enough about the great work force we have here, and how difficult a decision this was that we had to make."
He declined to discuss any severance package for the employees.
The layoffs at Block are just the latest in a string of recent such news in Northeast Mississippi, with some 2,500 layoffs announced since June.
"It's really not good news," said Tupelo Mayor Ed Neelly. "And hopefully, the economy can be turned around."
In Tupelo alone, some 250 layoffs have been announced since October.
Daily Journal
TUPELO - Apparel maker Block Corp. is laying off more than half of its employees, starting Jan. 1.
The company's senior vice president of operations, Jim Beisel, said the 120 layoffs of distribution and warehouse workers would be completed by the end of January.
The battered economy - and sinking retail sales - had everything to do with the decision, Beisel said.
"Specifically, it was the retail climate, which has been especially difficult," he said. "It's been a difficult year, and it's affecting us."
Retailers are expected to report the weakest performance for October since at least 1969. Michael P. Niemira, chief economist at the International Council of Shopping Centers, told the AP last week that he expects same-stores sales to fall 0.5 percent.
And department stores and apparel stores have been hit hard as consumers have pulled back on spending.
Block's layoff comes not long after Lanier Clothing's announcement in August that it was shutting down its Tupelo operations by December, leaving 46 people without jobs.
However, Block - which consolidated its Amory and Columbus operations to Tupelo three years ago - will maintain about 100 workers at its West Main Street facility.
Also, Beisel said the Block retail store would remain open.
"These are fine people, which is one of the reasons why we chose to come to Tupelo," Beisel said. "I can't say enough about the great work force we have here, and how difficult a decision this was that we had to make."
He declined to discuss any severance package for the employees.
The layoffs at Block are just the latest in a string of recent such news in Northeast Mississippi, with some 2,500 layoffs announced since June.
"It's really not good news," said Tupelo Mayor Ed Neelly. "And hopefully, the economy can be turned around."
In Tupelo alone, some 250 layoffs have been announced since October.
Labels: Block Corp., layoffs, Mississippi
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