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By Lisa King
After 42 years, a longtime Shelby County company will close its doors in June because of a conflict with the building’s landlord, company officials say.
Cenveo, headquartered in Texas, last year, purchased National Envelope Company, which has been located at 252 Pearce Industrial Road since 1972.
A spokesperson for Cenveo announced the plant’s closing recently.
“The closing of the company is a direct result of the company’s inability to negotiate acceptable terms with the building landlord, a division of Spirit Finance Corporation,” wrote Kyle Marlin, Regional Director of Human Resources for Cenveo in Ennis, Texas, in a WARN ACT announcement to Shelbyville Mayor Tom Hardesty.
The closure will result in the loss of 83 jobs.
The WARN ACT, or Worker Adjustment and Retraining Notification Act, protects workers, their families and communities by requiring most employers with 100 or more employees to provide notification 60 calendar days in advance of plant closings and mass layoffs.
Libby Adams, executive director of the Shelby County Industrial and Development Corporation, said she and her staff were shocked by the news.
“Our office is just very upset that this has happened,” she said. “We hate that those people will be displaced from their jobs.”
Adams said that state economic development programs are in place to assist struggling companies but National Envelope, and Cenveo, was not in a position to take advantage of any type of state assistance.
“If there were anything we could do to keep them here, we would be open to discussions,” she said. “The state has the programs for industries that are looking at closing, and I'm not at liberty to share the background situation but they don't qualify for any of those programs.”
Hardesty echoed Adams’ sentiments about the closing.
“I think it's a terrible loss to the industrial community here to lose eighty-three jobs that affects eighty-three families in Shelby and surrounding counties,” he said. “We hate to lose anybody here in our industrial family that provides jobs and employment opportunities for our community.”
Neither Marlin nor plant manager Steven Cavell returned phone calls from The Sentinel-News seeking information on whether employees might be able to transfer to other locations.
Terri Bradshaw, communications director for the Kentucky office of Employment and Training, said employees could come into the Kentucky Career Center at 88 Brunerstown Road anytime and apply for work.
But one has to actually be officially unemployed to apply for unemployment insurance, she said.
“As far as unemployment insurance goes, there is a waiting week period so, that first week they’re unemployed, they can’t do anything,” she said. “After that, they can file for unemployment insurance.”
In the WARN announcement, Marlin noted the employment breakdown of lost as:
§ Envelope machine adjusters: 35
§ Machine operator/packers: 16
§ Quality assurance: 3
§ Press people: 2
§ Material handlers: 2
§ Adjuster team leaders: 2
§ Shipping and receiving clerk: 2
§ Shipping lead clerk: 2
§ Customer service reps: 2
§ Baler: 2
§ 15 other positions: 1 each
Adams said that the plant’s closing is only the second in the county this year or last.
“Profile Pipe did shut down and they did lose two or three employees,” she said. “You hate to lose two or three employees and I'm not sure what happened with that. But, other than that, we have not had any other major industries shut down, not even when things were bad. We didn't have any that closed, they found ways to make it through.”