[N]ORTHFIELD — A central Vermont company that employs 60 people making colored T-shirts will shut its doors for good next month.
Gildan Garments announced it would close the company it owns in Northfield, called Comfort Colors, at the end of October. Comfort Colors dyes T-shirts and is often on the tag for dyed apparel, such as college sweatshirts and sweatpants.
Gildan makes garments under such brands as Anvil, Gold Toe, and Silks, and has a license to make socks for Under Armour. Gildan bought Comfort Colors for $100 million in February. The closing is described as a way to “streamline” operations.
Gildan is a publicly traded company based in Canada, trading under the name Gildan Activewear Inc. and the ticker “GIL” on the New York Stock Exchange. It has a market capitalization of $9.86 billion and pays a 6.5-cent dividend to shareholders.
Barry T. Chouinard started Comfort Colors in 1975 at age 24, according to the website. Chouinard wrote that he was committed to his company’s roots while changing with the times. He was not available for comment Thursday.
“We’ve developed and implemented many innovations, including a state-of-the-art wastewater treatment plant,” Chouinard wrote on the website. “We’re known today for the quality of our product and the timely delivery of any sized order. At present, we have strategic partners in 35 countries.”
Genevieve Gosselin, the spokesperson for Gildan, said in an email that all 60 affected employees received a 60-day notification that the company was closing. Those who continue to work through the end of October will receive severance packages, she said.
“By streamlining and consolidating certain garment dyeing and distribution activities currently being handled at the Vermont locations into its modern, larger-scale facilities, Gildan aims at improving its supply chain efficiency and enhancing its customer service,” Gosselin wrote.
“We regret the impact that this difficult decision will have on these experienced and dedicated employees and their families, and the Company will make every effort to alleviate the impact of this transition for the employees,” she wrote.
Once severance packages run out, employees will qualify for unemployment benefits.
