Levi Strauss Closing 3 Remaining Canadian Plants-1180 jobs

Sep 25, 2003
Levi Strauss to Close Three Remaining Canadian Plants That Employ 1,180
The Associated Press

TORONTO (AP) - Levi Strauss & Co. has spread its cost-cutting strategy to Canada, announcing Thursday it will close its three remaining manufacturing plants north of the border that employ 1,180 people.
The plants to be shut down by March are sewing operations in Edmonton, Alberta, and Stoney Creek, Ontario, and a finishing center in Brantford, Ontario, the company said.

Julie Klee, general manager of Levi Strauss & Co. (Canada) Inc., said the move will allow the company to focus on product design, marketing and sales of its jeans.

"The closures are an absolutely necessary part of ensuring the long-term competitiveness of our business," Klee said. "Moving away from owned-and-operated manufacturing to a broader sourcing base will strengthen our business by giving us much more flexibility." (BBB: read outsource to Asia.)

In 2002, Levi's U.S.-based parent company closed six U.S. manufacturing plants in a move that laid off 3,600 workers. The jeans maker has been struggling to reverse a six-year slide in its sales as consumers began buying more trendy or less expensive clothes.

In an effort to bounce back, Levi's has designed more clothes to appeal to teenagers and young adults, and cut costs to lower prices. The company also entered the discount jeans market earlier this summer with a new brand called Signature that is sold in Wal-Mart stores.

The Canadian subsidiary said it will offer a comprehensive separation package to those losing their jobs, with a $700,000 transition fund set by the Levi Strauss Foundation to help the three communities where the plants being closed are located.
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