After more than 160 years of providing textile jobs and services to the area, Avondale Mills announced Monday the family-owned company may be closing its doors July 25.Although there is still a possibility it will either liquidate or sell its assets, "we wanted to give our associates as much notice as possible that we may be closing," said Steven Felker Jr. of Avondale Mills.
"At the same time, we’re continuing to explore the other options available to us, which include restructuring, sale and liquidation," he said.
While the company’s overall closure is still undecided, some plants confirmed they will be shut down permanently, including Eva Jane and all other locations in Sylacauga and those in Pell City, a letter to associates dated Monday states.
The announcement marks the end of an era in Talladega and St. Clair counties, with Avondale impacting everything in the area from jobs to baseball fields provided years ago for the youth of Pell City.
About half of the company’s total 4,000 employees work in Sylacauga, Pell City, Alexander City and Rockford, Felker said, and those in Talladega County generate a $35 million payroll.
"It’s just devastating," he said. "It’s scary as well. I mean, it applies to me, too. There’s nobody who’s above this here in the company. It’s disappointing, and it’s just been overwhelming."
While international trade with countries such as China has been a major player in Avondale’s decision, the breaking point came about a year and a half ago when the company’s plant in Graniteville, S.C., was hit with an unusual disaster.
A train carrying tons of chlorine gas derailed near the company Jan. 6, 2005, killing six employees, three citizens and destroying millions of dollars worth of equipment.
Because chlorine is highly corrosive, the 70 tons of gas quickly ate away at metals, electronics and plastic equipment used in the day-to-day operation of the company’s corporate headquarters.
"In addition to the human tragedy, the financial impact of higher costs, lost business and severely damaged equipment and plants is greater than we can endure," G. Stephen Felker Sr., chairman and chief executive officer, wrote in a letter to employees dated Monday.
"We have worked hard for a year and a half to recover, but the damage is too great. Without the train derailment and chemical spill, we were challenged. With it, we were destroyed."
Before the train derailment, officials worked aggressively for several years to brace for the onslaught of international trade, Felker Jr. said.
"The international trade and the global competition, we knew those issues were coming," he said. "And we spent a lot of time, money and effort getting ready for increased global competition in the textile business.
"We have very modern plants, we’re financially strong and we had a very skilled and reliable work force. It was going to be difficult, we knew that, but we also knew we had a strategy that would allow us to continue operating in a competitive business environment. What we couldn’t foresee was this terrible derailment. Aside from human tragedy, it just destroyed our business."
As far as the amount of money spent at attempts to rebuild in South Carolina, Felker Jr. said, "at this point, I’m not at liberty to discuss those details. We will have a public statement concerning our derailment expenses, but at this point in time I’m not able to comment on that."
Aside from the financial side of the coin, the Avondale name has been ingrained in the history of Talladega and St. Clair counties for years.
"Avondale was such a proud company with a rich tradition, not only of taking care of employees but also of supporting communities," said Guin Robinson, former Pell City mayor who worked at Avondale’s Pell City location for 10 years.
"I know the management of the company must be very upset to have to make this decision. I know from having worked there, it must be horrible. We’ve all heard and known the troubles of textiles in our country, but I had hoped Avondale could weather the storm," he said.
Robinson said he remembers children playing on ball fields donated by the company to Pell City years ago.
Because of that dedication to community, local officials have pledged to take care of the mill’s area employees.
Sylacauga Mayor Sam Wright, state Sen. Jim Preuitt, D-Talladega, and Ron Johnson, R-Sylacauga, have already pledged their support to provide job training for Avondale employees and "do their best" to help with complications regarding Blue Cross Blue Shield insurance.
"This is certainly a bad day for citizens and employees," Preuitt said at a press conference Monday. "I’ve already contacted Gov. Bob Riley and he has assured me that all efforts he can put to this will be No. 1 on his list of priorities.
"A rapid response team will be brought in, including Phyllis Kennedy with the State Department of Industry Relations, Ed Casteel with job training and Walter Bell of the insurance commission. … It’s a sad day, but we’re going to make the best of it. … We want to replace these jobs and we’ll do whatever we can to do that."
The Sylacauga Chamber of Commerce has also already scheduled classes beginning June 1 for assistance in resume writing and interview preparation skills. The classes are free to the public and will be offered at 6:30 a.m. and at 4 p.m. at the Chamber of Commerce each Thursday.
A job fair at Chalaka Challenge is scheduled for June 24 to help area employers seeking to hire displaced workers, said Joe Richardson of the Sylacauga Chamber.
"With a $35 million payroll, this will affect the economy greatly," said Calvin Miller, director of the Talladega County Economic Development Authority. "It’s going to affect people personally, too. They have so many employees, it’ll affect families, co-workers. It’s going to be difficult to replace that number of jobs."
Aside from its impact on the community, the announcement comes as a loss for the Felker family, which has been involved with Avondale since the 1800s, Felker Jr. said.
"I’m deeply connected to the business and devastated that this is what has happened," he said. "Avondale is certainly a significant part of the economy and there will be impacts, but the people in Sylacauga, Alexander City and Pell City, they’re very good people, reliable and I hope from the bottom of my heart it won’t take them long to find other employment opportunities in other locations."
