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Levi Strauss to close last remaining N.American manufacturing plants.

Discussion in 'Channel Zero' started by Pistol, Sep 25, 2003.

  1. Pistol

    Pistol Dirty Dozen Crew

    Joined: Jul 12, 2001 Messages: 19,363 Likes Received: 299
    Canada stands to lose even more than the US.

    Levi Strauss closes American plants

    By Lauren Foster in New York

    Levi Strauss, the iconic jeans brand that has been worn by generations of Americans, on Thursday announced plans to close its four remaining North American manufacturing and finishing plants, with the loss of almost 2,000 jobs.

    The world's largest branded clothing maker said the closures were part of a shift away from owned-and-operated manufacturing that began several years ago.

    "We're in a highly competitive industry where few apparel brands own and operate manufacturing facilities in North America," said Phil Marineau, the chief executive. "We need to focus our resources on product design and development, sales and marketing and our retail customer relationships."

    Levi Strauss said it would close its San Antonio operations by the end of the year and its three Canadian facilities by March 2004 and shift production to its global sourcing network.

    Bruce Raynor, president of Unite, the largest apparel workers' union in North America, said the job losses and plant closures were the result of US trade policies that allowed companies to "scour the globe for the cheapest, most vulnerable labour" they could find.

    Over several years of restructuring, the company has closed six US factories and two in Europe and shifted most of its production to Asia and Latin America. In an effort to reverse market share losses after consumers started deserting its jeans, Levi has also overhauled its product range and its marketing. But this week Moody's, the credit rating agency, downgraded the 150-year-old San Francisco-based company, citing concerns about "the rapid decline in the company's financial flexibility" and disappointing sales, cash generation and debt levels for the year to date.

    Despite tough conditions, including deflation in clothing prices, Levi earlier this month released estimated financial results showing a 6 to 7 per cent rise in third-quarter sales to about $1.08bn. Sales have been boosted by the launch of the Levi Strauss Signature brand through Wal-Mart stores - the first time Levis have been sold through a mass-market discounter.

    Levi bonds tumbled in April after a lawsuit from two former high-level tax managers accused it of inflating its profits by hundreds of millions of dollars.
  2. !@#$%

    [email protected]#$% Moderator Crew

    Joined: Oct 1, 2002 Messages: 18,517 Likes Received: 622
    blue jeans achieved world domination

    mission accomplished.

    shut em down.
  3. --zeSto--

    --zeSto-- Veteran Member

    Joined: Jul 12, 2000 Messages: 6,979 Likes Received: 2
    universe imploding in 3... 2... 1...
  4. Pistol

    Pistol Dirty Dozen Crew

    Joined: Jul 12, 2001 Messages: 19,363 Likes Received: 299
    Anyone know if they still got that tour in Frisco?
    Shit was cool.
  5. Weapon X

    Weapon X 12oz Loyalist

    Joined: Sep 6, 2002 Messages: 14,905 Likes Received: 202
    That sucks. I’ve noticed that they don’t carry my 535s in certain colours anymore. They stopped with my preffered brand of khakis too. Too bad for the job losses, and too bad for me, because Levi’s is the only pants I wear after Hilfiger and Guess started going in another direction years ago.
  6. mental invalid

    mental invalid Dirty Dozen Crew

    Joined: May 11, 2001 Messages: 13,050 Likes Received: 8
    you now how you keep jobs at home.....make sure that the standard of living is much better in other countires, and then it is not economically viable to have production there....

    then again does anyone wanna pay 100 for a pair of levis???
  7. im not witty

    im not witty Guest

    arent their commercials all about how much a part of americana they are?:rolleyes:
  8. nomadawhat

    nomadawhat Veteran Member

    Joined: Aug 24, 2001 Messages: 5,001 Likes Received: 2
    i haven't owned a pair of levi's since middle school... definatley won't be buying any now.
  9. ClueTwo

    ClueTwo Veteran Member

    Joined: Nov 30, 2001 Messages: 9,026 Likes Received: 121
    Ok, this might have pissed me off a few years ago, but now that I work in the electronic replacement field nothing is made in America. So what's one more company going off-shore? Really nothing..Since the pass of the trade act every company is willing to reduce their costs of production of up 75% in some cases. More money for me..WoooHooo!!
  10. Dick Quickwood

    Dick Quickwood 12oz Loyalist

    Joined: Aug 25, 2002 Messages: 14,783 Likes Received: 14
    they should lower their prices accordingly
  11. suburbian bum

    suburbian bum 12oz Loyalist

    Joined: Jan 30, 2001 Messages: 14,673 Likes Received: 3
    i dont think i have ever owned a pair of levis. But at urban outfitters they have levi's premium. And they are like 125 bucks. But they look pretty nice. But for that price i would rather have some diesels.
  12. garcia_vega

    garcia_vega Elite Member

    Joined: Jan 6, 2001 Messages: 2,931 Likes Received: 2
    the world is fucked. why give anybody a job in america when you can pay someone 85 cents a day to do the same job somewhere else?
  13. ClueTwo

    ClueTwo Veteran Member

    Joined: Nov 30, 2001 Messages: 9,026 Likes Received: 121
    Those are the only one's actually made in AMERICA..That's exactly why it's 125.00 fuckin dollars for a pair of LEVI'S!! That's absolutely out of this world!
  14. keep

    keep Guest

    ok from a business perspective it makes perfect sence to have the factory in some 3rd world where you only have to pay the works like $1 or 2 a day. but living here and trying to find a "good" job with not being able to go to collage fucking sucks. before to long nothing is going to be made here.
    "proud to be american, where everything is made in china"
  15. kido

    kido Senior Member

    Joined: Apr 16, 2002 Messages: 1,463 Likes Received: 0
    Sorry but.. What the hell are Diesels??