Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, May 11, 1995 TAG: 9505110088
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: GREG EDWARDS STAFF WRITER
DATELINE: LENGTH: Short
The selling price was not disclosed.
The plant's last day of production under Sara Lee ownership could be as early as May 26, Sara Lee said in a statement.
After the sale, Pluma plans to close the plant for about three weeks to install new equipment, with reopening planned for June 12.
The plant's 300 workers make sweat pants. Pluma executives couldn't be reached Wednesday, and the company did not disclose what type of product they plan to make there. Sara Lee's employees, however, will be given the opportunity to stay on with Pluma, Sara Lee said.
Sale of the plant was not related to an excess production capacity for sweat pants, Sara Lee spokeswoman Nancy Young said. In fact, the company will have to scramble to make up the capacity lost with the sale, she said.
However, she said, Sara Lee expected that two years from now, it might have to face closing the plant. For that reason, Sara Lee felt obligated to consider Pluma's offer and thinks it's in the best interest of its workers, said Kirk Beaudin, chief executive officer of Sara Lee Knit Products.
Pluma is a maker and distributor of sweat suits and jersey active wear, with plants in Eden, N.C., and in Martinsville, Chatham, and Patrick County.
by CNB