BIC Graphic USA today announced plans to close its facility in Atchison, Kansas which will result in the layoff of 88 employees. The work would be consolidated into BIC Graphic USA’s operations in Clearwater and St. Petersburg, Florida. The closure of the Atchison facility, planned for July 2009, is part of BIC Group’s cost reduction plan announced on April 22, 2009, designed to enable the Company to respond to the challenges of current economic conditions.
The Atchison facility is focused on promotional products, imprinting bags, padfolios and can coolers as part of the collection of products distributed by BIC Graphic USA. The promotional products business is being negatively impacted by the economic crisis and the reduction in discretionary spending by client companies for their advertising and promotional needs. The facility closing is expected to be completed by July 10, 2009. All affected full-time employees will receive separation packages. Commenting on the announcement, BIC Graphic Group General Manager, Nicolas Paillot, said, “We sincerely regret the effects of this business decision on our dedicated employees in Atchison. However, the economic crisis continues to challenge the promotional business and we must continue to take steps towards consolidation to achieve greater efficiencies.”
As part of the facility closure plan, BIC Graphic USA is considering a subcontracting agreement proposed to the Company by Atchison-based employees. BIC Graphic USA has communicated to Atchison employees that it will make a final decision by May 15, 2009 regarding the proposal. Paillot added, “We remain committed to the promotional products industry and have a positive outlook about the long-term strategies set in place for the future. In these difficult times, our goal is to continue to provide customers with the highest quality products and service.”
BIC Graphic USA, based in Clearwater, Florida, acquired Atchison Products, Inc. on August 31, 2007. BIC Graphic USA (UPIC: BIC, ASI: 40480), a division of BIC USA Inc., is a leading, world-class supplier of custom-imprinted products for the promotional products industry. Visit BIC Graphic USA’s website at www.bicrep.com.