Jones Consolidates in Mexico
New York–based Jones Apparel Group Inc. announced plans to shutter its laundry, assembly and distribution operations in San Luis, Mexico. The manufacturing giant will consolidate its production operations in its existing facilities in Durango and Torreon, Mexico. As a result, about 3,500 employees will lose their jobs. The closure, expected to be completed by September, will result in approximately $14 million of pre-tax restructuring costs for write-downs of property and equipment, employee severance and other expenses, the company announced. Chief Executive Officer and President Peter Boneparth announced in a statement that the decision was necessary to realize efficiencies in the business, adding that shuttering the San Luis facility will help the company realize an annual operations savings of $5 million.
