Probably, you were surprised after seeing this edition’s front page. It’s a replica of our first publication, circa May 15th, 1996.
20 years ago, we witnessed and reported the rebuilding of Malden Mills.
After a devastating fire in December 11, 1995 that destroyed most of the factory, its owner Aaron M. Feuerstein, surprised his labor force and the world, with his promise to rebuild and keep everybody on payroll for 90 days.
At the time, Mr. Feuerstein could cash the insurance, retired, move to paradise or any other place and forget about the business, but Mr. Feuerstein, in his own words said that he will continue fighting for the trust and loyalty shown by his employees during this tragedy, not to be broken.
“We all have much to be grateful for, particularly me,” said Mr. Feuerstein. ‘I am often asked why I want to stay in Lawrence and Methuen. I have here the best workforce in the entire textile industry.”
Keeping his promise, Malden Mills was rebuilt into a state-of-the-art manufacturing marvel but with a skyrocketing debt of $140 million. After filing for bankruptcy, Mr. Feuerstein lost the company to G.E Capital who later was taken over by the actual owners, Versa Capital.
On December 10 of this year, Versa Capital made the announcement that it will move the production to a recently acquired plant in Tennessee and for that reason; some 200 Lawrence employees will lose their jobs.
This news upset Lawrence Mayor Daniel Rivera who said that, two weeks ago, he was informed that the purchase of the Tennessee plant was an expansion and now he find that he has been lied to.
Looking back, perhaps Mr. Feuerstein’s altruistic decision to keep employees with salary for so long while rebuilding, dictated the future of Malden Mills. As a sole proprietor he could do what he did.
A company thinks of its investors first, the workers are expendable.
