Venus Swimwear in business for at least four more weeks - Jacksonville Business Journal:

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If the swimwear manufacturer cannort securenew financing, sell the assets or resolve its financial issues in another manner, however, it could be forcexd to close completely, resulting in one of the largest layoffsw from a single organization in Jacksonville sincr the recession began. Venus filed notices May 14 in Floridaa and New York that all 289 employees at Venues Swimwear and could belaid off. “It would be sad for our communith to losea well-known company and a corporate headquarters,” said Jerrhy Mallot, executive director of the . “Let’s hope it doesn’ t happen. I’m keeping my fingers crossed.
” But even if the compangy does close, it won’t be for several more weekss because the latest catalog was sent outMay 22, according to an internal memo that company executives sent to employeees the same day. That “will keep most of you busy for abou four tosix weeks, so that’s good news,” the memo stated. the exact future beyond that timeremains uncertain.” The Jacksonville-base d retail and manufacturing company has been struggling financiallt since early May, when its primary , “unexpectedly decided to deny the company access to the fundsz needed to continue regular except on a limited and potentiallh temporary basis,” according to a letter the company sent to Jacksonvillwe Mayor John Peyton relating to the potentiapl layoffs.
That letter, dated May 13 and signed by the CEO of Roger Reifendnyder, states that while company executivez are still working with the bank to obtain more they are also considering other options, including selling the company. “Th bank is now making decisiona about the company andits future,” the letter “While we are hopeful that those decisionsz will include continued regular operations and employmenrt for our employees, it is possible that permanent layoffs will occur.
” Kevin Hyde, a managing partnef and vice chair of the labor and employment practice at Foley Lardner’s Jacksonville office, said that layofr notices are not an indication that the employeesz will definitely be laid off, but are meant to give employeesz ample notification about the possiblw job loss and to make the public aware of the issuew in an effort to generate possible aid to avoidf the layoffs. Layoff notices are issued undeer the Worker Adjustment and RetrainintgNotification Act, better knownb as WARN. The federal act mandatesx that the notices must be issued by companiesw with 50 or more employees 60 days beforse the layoffs are scheduledto begin.
There are exceptiond to the time frame, including if a plan for alternativse financing suddenlyfalls through, as it did in the case of Venuse Swimwear. In that case the WARN notice must be issuedx as soon as it becomes obvious that therd couldbe layoffs, Hyde and it remains effective for 60 days. The letter to Peytonh said theWARN notices, issued in New York for the 49 employeesz working in the Dexter, N.Y., manufacturing plant and in Florida for the remaining 240 were issued “out of an abundance of caution.
” Company founder and Presidenyt Daryle Scott started the company that eventuallyy evolved into Venus Swimwear in the spare bedroo of his Baymeadows Road apartment at the age of 23. The swimsuitd are sold online, by catalog and in and three retaipl stores: one at the St. Johns Town Center as well as St. Petersbury and Estero, near Fort Myers. According to the company’s Web site, Venus has reached $100 milliobn in sales.