Hollander Sleep Closing a Plant in North Carolina
The largest manufacturer of mattress pads and bed pillows in North America, Hollander Sleep Products, LLC, has announced that it is closing down its manufacturing plant in Gastonia, North Carolina. A total of 60 employees are going to lose their jobs.
The affected employees primarily include those working in sewing production, although employees in supervisory, administrative, maintenance, and shipping roles are also going to be sent home.
The plant will be permanently shut down by the end of August. The mandatory layoff notice filed with state officials under the Worker Adjustment and Retraining Notification Act (WARN Act) says that the layoffs will take place over a period of two weeks following the closure. The company cites this to be “in accordance with the operational needs of the plant to service customers.”
The WARN document also mentions the reason behind the factory shutdown. The Florida-based Hollander Sleep Products recently acquired its peer, Seattle-based Pacific Coast Feather Company, which makes down-filled comforters and other types of bedding products. Both corporations are century-old American companies.
The acquisition was completed in June. Since the acquisition, Hollander has been consolidating the two businesses.
The WARN document says that the Gastonia factory is closing because the company no longer finds it to be “a viable manufacturing facility due to the combined capacity of the new corporation.”
Pacific Coast Feather applied for government grant funding back in 2014, through North Carolina’s Commerce Department. The company’s grant application was premised on fact that the company made a $5.5 million investment in its factory in the region, and that it promised to create jobs. The Gaston County government granted $25,000 to the company because of its participation in the state Commerce Department program.
Regardless, following the consolidation of Hollander Sleep Products and Pacific Coast Feather, 60 local jobs are going to be lost in the county.
“Mattress pad manufacturer to close Gastonia plant, lay off 60 workers,” The Charlotte Observer, June 29, 2017.
“60 workers to lose jobs as Ranlo plant shuts down,” Gaston Gazette, June 29, 2017.