National Envelope To Close Worcester Facility
National Envelope Corp. informed state and local officials yesterday it would close its Greenwood Street manufacturing plant in Worcester by this December.
Worcester Assistant City Manager Julie Jacobson estimated that 150 employees work at the facility and she expects the location to be fully closed by the end of the year. She didn't know how many of the employees would be offered jobs at other National Envelope sites.
City officials have been in contact with the company and the city's rapid response team will be working with employees to help them find new jobs or training programs, Jacobson said. Then, city officials hope to work with the company and building's owner to find a new tenant for the property.
Executive vice president of operations for the company Thomas Cristelli wrote in a letter to the state that effective Dec. 9 there would be a "permanent mass layoff or plant closing" impacting the Worcester location. The company filed a Worker Adjustment and Retraining Notification Act, or WARN notice, with the state and city yesterday.
National Envelope Corp. is based in Frisco, Texas, and was founded in 1952. The company announced in June it entered a Chapter 11 bankruptcy restructuring. Last month, California-based private equity firm The Gores Group LLC completed its purchase of "substantially all of the assets" of the company.
According to a statement from the Gores Group, some of the workers at the Worcester plant may be offered work at other National Envelope facilities. The consolidation of the plant is a result of "excess capacity" from past acquisitions. The Gores Group said the Worcester plant closing will be a "phased shutdown" over a period of time.
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