CUMBERLAND, Md. (AP) — A second round of layoffs came this month at Biederlack, which blamed global competition and a weakening economy in the U.S.
Some 50 employees, who work in administration and production, down from a holiday work forced of about 120, remain. Between 50 and 60 employees were laid off around Christmastime, and some were recalled last month.
Two deals fell apart: one with Wal-Mart and another with Sam's Wholesale, a division of Wal-Mart, according to Peter McCabe, president of Biederlack, which manufactures blankets, said.
The fallout is causing Biederlack to ''restructure the company going forward,'' he said.
''I would say as recently as three weeks ago, we were very confident that we would have a significant Wal-Mart program and it really just sort of fell apart in the last seven to 10 days,'' McCabe said. ''It comes as a shock and a total surprise (to) go from a significant program (in 2007) to zero in a matter of days. I've been doing this for 25 years and have been through some ups and downs, but this is as devastating as it gets to our business.''
Earlier deals with both retailers, McCabe said, had been ''deemed to be successful programs'' by the retailers. He said the company was confident enough that it purchased raw material for future orders.
A meeting in New York with Wal-Mart officials in early February seemed promising, the company president said.
''We felt there was a program,'' McCabe said. ''It just sort of evaporated.''
A news release on Friday stated that ''the company plans to remain in Cumberland after transitions in the manufacturing segment of the business have been completed.''
McCabe wasn't sure whether Biederlack, which has been in Cumberland since 1979, would focus on manufacturing, sourcing, distribution or design, or a combination.
''I don't have a quick-fix answer,'' McCabe said. ''At one time we dealt with every major retailer in this county from Cumberland. When you find these people go overseas for everything and they cut you out, you have to reposition yourself in some way. We're still evolving that position.''
