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NBEDC, City help Nutex retain nearly 35 jobs
City firm receives 'nice Christmas present'
By Aaron Nicodemus, Standard-Times staff writer
 NEW
BEDFORD — A dark cloud lifted for the 35 or so employees
at Nutex Industries in the South End yesterday after the
company emerged from Chapter 11 bankruptcy.
For months, the company had operated under bankruptcy
protection, a double-edged sword that was the firm's
temporary salvation but could have meant a death knell
if the U.S. Bankruptcy Court had allowed Citizens Bank
to be paid, or had liquidated the company.
Yesterday, the bankruptcy court approved Nutex's
reorganization plan and its employees have their jobs.
There is much work to be done, now that employees will
not get a break between Christmas and New Year's.
"It's a big relief to all the workers," said Bruce
Rachel of Fall River, a manager at Nutex for the past 10
years. "The mood here had been kind of down, but we all
figured we should stick it out, fight it out. It's a big
family here, and everyone's happy today."
Nutex hummed with the sound of looms weaving strands of
brightly colored yarn. Located in a mill tucked inside
the hurricane barrier on West Rodney French Boulevard,
the company makes belts and other woven fabrics for
apparel companies such as Wal-Mart, Land's End, J. Crew
and Eddie Bauer; for military uses, such as
flame-resistant mesh for fighter pilots; and for medical
uses, such as belts and harnesses used by nurses to
transport sick patients. It manufactures belts used by
the Boy Scouts of America. The company has been in
business since 1980, and 10 years ago employed as many
as 75 people.
But since 2000, the company's customers began seeking
cheaper alternatives in China, and half its business
disappeared.
"Between losing business and downsizing, it has been a
very painful process," company President Andrei Klein
said. "In the last six months, we managed to stay alive
under tremendous duress. We have tremendously loyal
employees, and loyal customers, but we didn't have the
money to buy raw materials. So we couldn't deliver
finished product on time."
Emerging from bankruptcy protection will allow the
company to use money lent to it from one of its largest
customers to buy the yarn its machines turn into woven
products. In four to five weeks, the company will be
profitable again, Mr. Klein promised.
The company got some help in emerging from bankruptcy
protection. One of its regular customers floated the
company a loan; Mayor Scott W. Lang testified on the
company's behalf before the bankruptcy court; and
Matthew A. Morrissey, executive director of the New
Bedford Economic Development Corp., promised to work on
a tax increment financing plan and access to federal and
state grants.
Joe Soares, supervisor of the weaving room, has worked
at Nutex 21 years. He was worried about his job, he
said, until yesterday.
"It was a nice Christmas present for everyone," he said.
"Everybody is relieved and happy to have their jobs,"
said Maria Rodrigues of New Bedford, an employee at
Nutex for more than 19 years. "It means less people on
the unemployment line."
Jale Stone, a designer at the company for 19 years, said
the company's work force is older and it would have been
hard for them to find new jobs.
"I'd have no place to go if we lost this," she said.
"It'd be a Stop & Shop bagger, I guess."
Contact Aaron Nicodemus at
anicodemus@s-t.com
Date of Publication: December 23, 2006 on Page A05 |
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