MUNFORDVILLE, Ky. (WBKO) - Monday, officials with Hollander Sleep Products announced they were permanently closing the Munfordville plant.
A letter sent to employees states, "After significant contemplation during Hollander's current Chapter 11 bankruptcy re-organization proceeding, Hollander has concluded that the Munfordville Plant is no longer a viable manufacturing facility due to significant decreases in the orders for the mattress products manufactured at the Munfordville Plant and the physical and logistical limitations for the Munfordville Plant."
The Kentucky Career Center confirmed they received notification for the permanent closure of the plant. Officials said the closure affects 208 employees.
The letter sent to employees further states the closure of the plant will occur over a 14 day period beginning August 21, 2019. Officials with Hollander Sleep Products said, “The company anticipates officially closing the plant in the late fall, with the exact date still to be determined.”
In May, Hollander Sleep Products filed for bankruptcy.
Hart County Judge-Executive Joe Choate told 13 News, "We will be very aggressive in trying to fill that hole and obviously first and foremost are the folks losing their jobs, and that we get workforce development involved and other folks to help on placing them into other jobs or training for other jobs."
Choate said before Hollander Sleep Products the plant was occupied by Louisville Bedding and has been part of the community for more than 50 years.
"We have other companies that are hiring inside Hart County, so you know, a lot of these folks we can move right over. We've got expansions going on right now at Sister Schubert and I know Dart is hiring, you know, we've got some jobs."
Hollander released the following on June 25 about the closure:
Hollander Sleep Products (“Hollander”), the leading North American supplier of pillows and mattress pads, announced today that the company is closing its Munfordville, Kentucky, production plant this year. The move follows the company’s decision in May to voluntarily restructure the business through Chapter 11 bankruptcy proceedings.
Hollander acquired the Munfordville plant, which manufactures mattress pads, with the acquisition of Louisville Bedding Company in 2013. The decision to close the plant was a direct result of decreased customer demand for mattress pads as well as a shift in the market to import goods which greatly impacts the profitability of this location in the future.
“Closing the Kentucky plant was a necessary but difficult decision to make as we maintain our strategic focus on becoming more efficient and cost-effective in our distribution to the industry,” said Marc Pfefferle, Hollander’s chief executive officer.
In the short-term, Hollander will continue to operate the Munfordville plant at current staffing levels and on a normal course basis. The company anticipates officially closing the plant in the late fall, with the exact date still to be determined. Hollander leadership will provide support for plant management and production staff through the transition.
“We greatly appreciate the service and dedication of our Munfordville employees,” Pfefferle said. “We intend to work with the employees and their managers over the summer to provide financial support and resources and assist with identifying employment opportunities and job placement services.”
Other Hollander offices and plants around the world will remain open, staffed and supplied.