Canadian apparel manufacturer Gildan Activewear has announced its plan to shut its Massachusetts-based Comfort Colors dyeing facility by the end of February this year. The announcement of the closure has come as the company wants to operate its garment dyeing operations from a single place, informed Garry Bell, spokesperson for Gildan.
The apparel manufacturer will lay off around 90 people as it has plans of shifting its production to Central America. The company’s operations in the US are not going to get affected due to the closure of the Massachusetts-based facility, it states.
Gildan bought Comfort Colors of Northfield at US $ 100 million in the year 2015. It took care of the supply needs of garment-dyed undecorated basic T-shirts and sweatshirts for the North American print-wear market. Gildan has been a competitor of Hanesbrands Inc. of Winston-Salem in this segment.
Further, challenged by an evolving retail environment, Gildan reported consolidated net sales of US $ 716.4 million during the second quarter which remained flat compared to the prior-year period.
Gildan said that a rising number of consumers are buying clothing online rather than in brick-and-mortar stores and hence this remains a challenge. It also reported a “lower-than-expected” branded apparel sales overall.