Brown Shoe moves to close last North American factory

18/12/2003

The Perth, Ontario, plant of the Brown Shoe Co. will produce its last pair of shoes in April 2004, the company has announced.

 

The company has been producing boots and sandals at the Canadian plant since 1961. Around 300 jobs will be lost and the closure will also see the end of the company’s North American manufacturing operations, though it will continue to operate a distribution centre from the Perth site.  Brown Shoe will take an after-tax charge of between $3.8 million and $4.2 million in the fourth quarter to cover severance payments and material costs.

 

Ken Gilbertson, president of the Canadian facility, said the decision to lay off so many workers had not been easy, but that it was necessary to maintain the company’s competitiveness in the North American womens footwear market, which is increasingly dominated by imports.  In September 2002, Brown closed its plant in Stirling, Ontario, and consolidated its Canadian manufacturing at Perth. Brown Shoe says it now intends to focus its Canadian energies on the promotion of its ‘Naturalizer’ brand.

 

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