| 03/22/2006 |
| Textile juggernaut hits hard times |
| Marc Munroe Dion , Herald News Staff Reporter |
|
FALL RIVER -- For Quaker Fabric
Corp., the high point was in late December 1998. With 2,400
employees, the local textile giant was Fall River’s largest private
employer. As 1998 came to an end, the company announced its plan to
build a 1.3 million-square-foot plant at the southern end of
Jefferson Street. The project would require 60 acres of land and,
upon completion, would employ an additional 1,800 workers. Quaker
planned to invest $36 million in the project.
Today, the Jefferson Street site is up for sale and Quaker has purchase and sale agreements signed for its Somerset facility and the company’s plant at 763 Quequechan St. The company estimates it will record a $26.3 million loss for 2006. After several rounds of layoffs, Quaker’s total employment stands at about 1,400. On Tuesday, Quaker Fabric stock closed at $1.80, its lowest point in 52 weeks, as the company reeled from an announcement by its own accounting firm that the company might not be able to "continue as a going concern." Asked Tuesday if Quaker would close its doors, company President and Chief Executive Officer Larry Liebenow said that he didn’t think Quaker was headed out of Fall River. "We don’t believe that," Liebenow said. "We have every intention of continuing to manufacture here in Fall River." Just how much manufacturing will be done in Fall River is another matter. Quaker has recently signed agreements with Chinese and Korean firms to manufacture Quaker products abroad. "Staffing levels will be a function of what our sales out of Fall River will be," Liebenow said. Liebenow said that product from China should be appearing under the Quaker name by next month. As Quaker’s fortunes waver, the stock price has tumbled. Tuesday saw the stock trading at double its usual rate of about 35,000 shares a day. But in 1997, Quaker stock was riding high, hitting $19 a share that year. By March 2003, after a troubled 2002, the stock traded at around $5.50 a share, but rebounded in 2004 to touch $11 a share at the beginning of the year. Quaker stock has lost more than 50 percent of its value in the last 12 months. Liebenow said that, while the company has missed earnings targets required in its contracts with creditors, Quaker has not defaulted on any payments and is in discussions with its creditors. Layoffs, plant closings and deals with offshore companies are all things he needs to do to keep Quaker alive, Liebenow said. "We’re in the process of restructuring," Liebenow said. "The most difficult part is behind us." E-mail Marc Munroe Dion at mdion@heraldnews.com. |
