New Era Cap Co., Buffalo, N.Y., has announced it is closing its manufacturing plant in Derby, N.Y., effective March 2019.
“This contemplated decision is part of the company’s ongoing effort to more closely align its business model with its competitors in the global sports, lifestyle and apparel industry by moving away from owning and operating manufacturing plants,” the company said in a prepared statement.
The plant represents New Era’s only headwear-manufacturing facility in the United States, where 219 jobs will be impacted with the impending closing. Most of the company’s sports apparel is now made by third-party contactors in places like China, Bangladesh and Vietnam.
“This is an extremely difficult for me,” says Chris Koch, New Era’s chief executive officer, in the statement. “I grew up in Derby and worked in the facility, which has had a long, productive history with the company. Even as other sports apparel brands moved away from running their own manufacturing plants, we continued making caps at our facility in Derby. But I have an obligation to our employees, partners and customer to ensure the long-term success of this company and we need to keep up with changes in our industry.”
The Associated Press reported that the Derby plant, near Buffalo, makes about 2% of New Era’s total product, including the caps worn by Major League Baseball (MLB) players during games. The caps will continue to be made at an Opa Locka, Fla. screen-printing plant operated by 5th & Ocean, New Era’s fan apparel brand.
In accordance with the collective bargaining agreement, New Era said it has informed the local workers’ union of its contemplated decision and expects to meet to discuss the matter in the coming weeks. The company is prepared to offer the affected employees benefits and severance at levels beyond what is required in the current agreement. — D.S.
