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National Envelope workers in Upper Tyrone notified of closing potential

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By Daily Courier
Saturday, June 8, 2013, 1:26 a.m.
 

Employees at the National Envelope plant in Upper Tyrone on Friday received a conditional WARN letter.

The letter was given to employees throughout the company, said Kim Lehere, director of marketing for National Envelope.

National Envelope is up for sale.

The letter presented to employees states that because of adverse business conditions and the inability to date to secure additional financing necessary to support ongoing operations, National Envelope is experiencing financial issues.

The letter provides notice to employees that if the company cannot by Aug. 6 secure sufficient additional financing necessary to continue operations or sell all or substantially all of the assets to “an entity that will continue the operations, the company anticipates that it will need to take steps to permanently discontinue operations at all sites.”

The company has sites in Scottdale; Appleton, Wis.; Industry, Calif.; Ennis, Texas; Frisco, Texas; Exton; Shelbyville, Ky.; Smyrna, Ga.; Westfield, Mass.; Lenexa, Kan.; and Kent, Wash.

The letter states: “If the company fails to secure additional financing and/or consummate a sale by Aug. 6, 2013, your employment position will be terminated and you will be informed of your specific termination date.”

Lehere said there are just under 400 employees at the Scottdale plant.

CEO Jim Pinto said in the letter that while the company is optimistic it will be able to obtain the financing or find a buyer, the company is required to provide the WARN notices to employees.

Pinto said in the letter that the envelope industry is facing serious challenges brought on by declining mail volumes, competitive pressures and an overall sluggish economy.

He said this has resulted in shortened work weeks for some employees throughout the company, and more recently, there have been some layoffs across all locations.

“While we continue focusing on strategic options, we expect that our company will continue to operate. All of our plants are running,” said Pinto in the letter.

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