Hollander Sleep Products is closing its Thomson plant this fall.
The company has announced that it is closing its manufacturing plant at 3301 Stagecoach Road and will shift the production of pillows and mattress pads to other East Coast facilities.
Hollander, one of the largest bedding products manufacturers in North America, relocated its Tignall facility to Thomson in 2014. In June 2018, the Boca Raton, Florida-based company announced that it was closing the Thomson plant in October and moving operations to larger plants in Pennsylvania and North Carolina. Employees were given the option to move to another facility and those who did not want to relocate would receive financial support and assistance with job placement.
There was a decision change in the fall of 2018 and Hollander resumed its Thomson operations.
According to the June 3 announcement, Hollander is now closing its Thomson facility and moving some production lines to other East Coast plants with more capacity to scale production to meet current and future customer needs.
The closure of the Thomson facility comes in the midst of Hollander’s restructuring through Chapter 11 bankruptcy proceedings. The company filed for bankruptcy in May, citing a cash crunch due in part to increasing costs for materials. At the time of filing, it said it had secured lenders who agreed to provide it with $118 million to keep it operating during the bankruptcy process.
According to Hollander, Thomson’s 208,000 square-foot facilities and its operation is the company’s smallest East Coast manufacturing location. The company said the Thomson facility has operated at full capacity and needs upgrades and more warehousing space. Hollander will move the manufacturing of products made in Thomson to Pennsylvania and North Carolina plants.
“Our number one strategic focus is to improve customer service while becoming more efficient and cost- effective in our distribution to the industry,” said Marc Pfefferle, Hollander’s chief executive officer. “While difficult, this plant closure will allow us to maintain service to our retail customers, reduce overhead, and shift some production to our plants in North Carolina and Pennsylvania that have available space and capacity to add additional operating lines and production.”
The Thomson plant will continue its normal operations for now, Hollander said. “The company anticipates officially closing the Thomson plant in the late fall, with the exact date still to be determined,” the company said in the June 3 announcement.
Hollander has offered to provide support to the management and employees of the Thomson plant through the transition.
“We have tremendous respect and gratitude for our employees in Thomson, many of which have committed their careers to Hollander previously in our Tignall plant and continued here,” Pfefferle said. “I personally would like to thank them for their hard work and dedication to Hollander, and we hope some of these dedicated associates will consider continuing their careers with us at the Henderson, North Carolina facility. For those who stay in Georgia, we are working closely with employees and their managers to provide financial support and resources, and assist with identifying employment opportunities and job placement services in the area.”