Despite earlier statements that it hoped its job cuts were complete, Fleetwood Enterprises Inc. has eliminated an additional 250 jobs from its operations in Decatur, Ind.
As reported by the Fort Wayne Journal-Gazette, the Riverside, Calif.-based company still has 900 people working at three facilities in Decatur. The RV maker cut 300 jobs there in June.
Of the jobs cut, 15 were from Fleetwood’s service facility, 16 from the Gold Shield Fiberglass facility and the rest were from the motorhome plant, according to Kathy Munson, the company’s director of investor relations. Munson said company policy prohibits disclosing how much the furloughed workers were paid.
The job cuts, which the company began Friday, are because of declining demand for Fleetwood’s products.
“We’ve just been trying to match production to the market,” Munson said.
Decatur is in Adams County, where the October unemployment rate was 7.1%, somewhat higher than the state average of 6.4%.
“That means the economy has caught up with us,” Larry Macklin, executive director of the Adams County Economic Development Corp., said of the Fleetwood job cuts. “We depend a lot on Fleetwood Enterprises here.”
Macklin said several Adams County businesses supply Fleetwood, including some that employ woodworkers who make cabinets, trim and other items for RVs.
Munson said she didn’t know when – or whether – the furloughed employees would get back to work. But if jobs in the Decatur facilities opened up, those who lost their jobs would have to reapply.
Meanwhile, Fleetwood announced that it has completed the offer, launched on Nov. 6, to repurchase its remaining 5% convertible senior subordinated debentures with shares of its common stock, as required by the indenture governing the debentures. Approximately $19.9 million in aggregate principal amount of debentures were tendered and accepted in the offer, which expired Monday.
Fleetwood will issue approximately 121.8 million shares of its common stock to repurchase the tendered debentures. The total number of shares was based on a price of just over 16 cents per share, which represents 95% of the average of the volume weighted prices of the common stock during the relevant 20-trading-day period. After issuance of these shares, Fleetwood expects the total number of outstanding shares of common stock to be approximately 209.2 million.