Skip to Content

Outsourcing your underwear

More
Text SizeAAA

Filed under: Borrowing, Shopping

The chances that Beefy T you're wearing was made in the USA are about to get slimmer.

Hanesbrands announced Wednesday that it's closing four of its plants in its home state of North Carolina, as well as three in Central America, as a cost-cutting measure.

In brief, the apparel company plans to lay off about 8,100 workers in four countries and to create about 2,000 new jobs at its sewing plants in Thailand and Vietnam. Giving a nod to the fact that outsourcing has become accepted practice in these tough economic times, Hanesbrands CEO Richard Noll said in a statement that the closures and layoffs are "a critical plank in our strategic efforts to reduce costs."

According to USA Today, the costs in question were incurred in 2006, when Hanes spun off from Sara Lee. While analysts lauded the move, saying the marriage of underwear and baked goods was about as comfortable as an ill-fitting thong, Hanesbrands took it in the shorts with $250 million in related charges. Since the company still has to cover about $46 million of these charges, Hanesbrands has more consolidation planned for the near future.

By the end of next summer, its last large knit-fabric textile plant in the U.S. will be shuttered, along with a sewing plant in Mexico. These closures will be balanced somewhat by the opening of a textile plant in China, which will supply fabric for workers throughout Asia. Investors reacted to the news by giving Hanesbrands' stock a slight wedgie: Shares fell 10 cents after Wednesday's announcement.
Subscribe to Walletpop

Reader Comments (Page 1 of 1)

Featured Sponsor

Refinance Your Home
Lower Your Payments!




Loans: Get the Basics

In addition to using our calculators for loans and finding out the current rates on loans, educate yourself on the basics of the loans you are shopping for.

Lita Epstein
Lita Epstein Filed under: Insurance

Ho ho ... oh no: When a holiday party goes wrong, insurance could save you millions

Now that the party season is at hand, and you may be planning to host a big shindig, think about protecting yourself or your company from a huge liability bill by getting event liability insurance. ...
Martha C. White
Martha C. White Filed under: Borrowing, Home, Mortgages

Mortgage payoff pitch is no panacea

Someone recently sent WalletPop a press release detailing what claimed to be one of those "eliminate your debt" strategies. This one hinges on something called a "mortgage checking account." It's ...
Zac Bissonnette
Zac Bissonnette Filed under: College

For-profit college loan default rates soar

Earlier this month, I warned readers not to enroll -- or encourage their children to enroll -- in for-profit colleges. New student loan default rates from the U.S. Department Education highlights ...
Kelly Phillips Erb
Kelly Phillips Erb Filed under: Tax

Is a value-added tax the answer to U.S. debt?

As of this morning, the national debt of the US is $12.1 trillion. To put that into context, if you counted $1 every second of every minute, you would have to count for 383,434 years to reach $12.1 ...

Headlines from WalletPop Partners

Eloise Returns to the Plaza Hotel
After a $450 million, three-year, lobby to roof renovation and restoration, the Plaza Hotel is ...
Readers' Choice Winners for Best in Food
Votes have been cast for Best Gourmet Grocer/Food Hall, Best Online Gourmet Goods, Best Cheese ...
Learn More»