SHOE PLANT CLOSINGS AFFECT 1,400 JOBS IN SOUTHEAST MISSOURI

CHARLESTON -- As many as 1,400 Southeast Missourians soon will be out of work as Brown Shoe Co. plans to close four facilities in Charleston, Bernie, Caruthersville and Fredericktown.

The company announced the closings Friday as part of a restructuring plan to bring manufacturing capacity in line with a continued drop in sales. The company said the layoffs would take place over the next three months.

In a statement released Friday, Brown Shoe officials blamed foreign imports for the demise of domestic shoe manufacturing and the plant closures.

"It is with great regret that we announce plans to close several facilities," said B.A. Bridgewater Jr., chairman of the board, president and chief executive officer of Brown Group Inc.

"The impact of free-market politics on small factory towns in Missouri has been devastating as imported women's shoes now claim well over 90 percent of the market."

U.S. Rep. Bill Emerson, R-Cape Girardeau, said Friday he was "distressed" to hear of the 8th District plant closings.

"I am particularly distressed because in the past 11 years I have been fighting hard to help stem the tide of foreign imports," the 8th District congressman said.

"The real tragedy here, though, is what it means to the families who have been good, loyal and dedicated workers of the Brown Shoe Co.," he added.

Rick Reed, president of the Charleston Chamber of Commerce and chairman of the Mississippi County Industrial Development Authority, said the plant closing will be "devastating" for Mississippi County.

"It's going to be devastating to the whole county if we can't find 500 jobs to replace the ones that are going to be lost," Reed said.

"At this point, we don't know which way to go. If it's not possible to change their decision, which is doubtful, then we've got to find replacement jobs for these people."

Charleston City Manager Brian Donovan said the loss of the city's largest employer dealt a particularly hard blow because the city has so few manufacturers to begin with.

"We estimate that there would be a lost of 500 jobs, which will obviously impact the city and the county," Donovan said.

"There's a loss of tax dollars from the plant and from sales tax and property tax from the employees' loss of their jobs."

Donovan said the city has only two other manufacturing plants, which employ 100 to 125 people each.

"We don't have a very large manufacturing base," he said. "The unemployment rate for the county is around 10 to 12 percent, so jobs are fairly scarce.

"A lot of those available jobs might be part time, which might make it even tougher for the employees."

Ironically, Donovan said the city has been working the past year with the city's industries to try to find ways to assist them and keep them operating.

A federal law that requires manufacturing firms to give employees at least 60 days notice before a layoff will at least give the Brown Shoe workers time to find other work, Donovan said.

Reed said elected state and federal officials are working with county officials to find out ways to help the Brown Shoe employees.

"We're looking at every possibility right now," he said. "We're always trying to attract new industry, and if the closing does go through, it opens up a very nice facility that would be available for someone to come in here.

"It's got access to the interstates and the river, so we feel like we're situated in a good location to attract industry. Possibly with the large building available, something might pop up.

"But in the meantime, we've got to see if we can absorb these workers in existing jobs in the county," said Reed.

John B. Biggs Jr., president of Brown Shoe, said the closings and restructuring of the company are part of an ongoing effort to reduce costs, consolidate operations and improve "operating performance."

"In total, the cost savings from these changes will be about $8 million," Biggs said. "We plan to continue to implement significant expense reduction programs through the remainder of 1991."

Brown Shoe reported net earnings for the first half of 1991 of $8.5 million, or 50 cents per share, compared to $14 million, or 81 cents per share in the first six months of 1990.

Consolidated net sales also dropped this year, from $874 million in the first half of 1990, to $839 million this year.

Mary Sylvia Siverts, director of public relations for Brown Shoe, said of the 1,400 total employees that will be laid off in connection with the closings, about 400 work at the Charleston factory.

Another 550 work at the Fredericktown factory and warehouse, 350 to 400 work at the Bernie factory and about 100 work at the Caruthersville warehouse.

"We reviewed the total factory and warehouse system, and because of locations and products made at these particular facilities, the decision was made to close them," Siverts said. "Basically, the location, products they were making there, plus a lot of other factors went into the decision."

Siverts said Brown Shoe has worked hard to keep its domestic manufacturing intact.

"Brown Shoe has done more than most companies in keeping our domestic factory system strong," she said.

Bridgewater cited poor economic conditions as the primary reason manufacturing has to be scaled back.

"These results reflect the continuing impact of the recession and particularly weak sales in mall-based retailing during our seasonally slow second quarter," he said.

Bridgewater said "aggressive expense control" has limited, but failed to completely avert the impact of lower sales. He said that hopefully with the cuts in production, the company can rebound in the second half of 1991.

"Retail business in August continues to be poor, but there are some indications of the possibility of improvement in the fall," Bridgewater said. "The planned changes announced today (Friday) will enable Brown Group to protect its earning power through extended recession and softness at retail, and rebound strongly when recovery occurs."

Emerson said he plans to work with economic development officials in Jefferson City and Washington, D.C., to seek industries to replace the shoe company in the Southeast Missouri towns.

"In the meantime, I will be working diligently with state and federal officials to provide the maximum level of benefits available to the individual workers for job retraining and unemployment compensation," Emerson added.

"This is clearly a trade-related problem and I will be asking for Trade Adjustment Act assistance from the federal level for our people as well."

Bridgewater also said the company will try to help the displaced workers.

"We will do our best to deal fairly with those displaced by these changes, and the outstanding productivity of our workers in the 16 plants that will continue to operate will keep the heart of our domestic factory and supply system strong," Bridgewater said.