153 jobs lost in Cedartown as Zartic shuts down
by From staff reports
Feb 08, 2008 | 568 views | 0 0 comments | 3 3 recommendations | email to a friend | print
Citing declining customer demand and business condition, Cincinnati-based Pierre Foods Inc. announced Friday morning that, it will close its Cedartown Zartic plant.

The closure went into effect immediately and affects approximately 153 employees.

Employees were informed of the shutdown as they picked up their checks Friday morning, according to company officials.

The Zar-Tran Trucking department, also based at the Cedartown Zartic plant, remains in operation at this point.

The City of Cedartown was not privy to the Zartic’s plans to close until Friday morning.

City Manager James Stephens said that Zartic’s Vice President of Human Resources, Beth Rogers, hand delivered the notice to the city around 8:30 a.m. Friday morning.

“The city was informed via a hand-delivered notice on the morning that the closure commenced,” Stephens said.

“The city is sympathetic to the trauma that the employees and families will experience as a result of Pierre’s decision.

“The entire city will be impacted by this closure as Zartic was a major water customer of the city. Accordingly, the city will be forced to evaluate the water fund 2008

budget,” Stephens added.

“I’m disappointed that additional steps to have the

Department of Labor on site to assist with employee’s initiating benefits was not put in place,” Stephens said.

Rogers confirmed that the labor department was not on site Friday morning but told him that the company was in compliance with Federal regulations regarding the their notice of closing.

Polk County Chamber of Commerce President Karolyn Hutchison was also made aware of the closure Friday morning.

“At this point, we don’t quite know how it will effect the county because we don’t know all of the details yet.”

According to a press release from Pierre, the company expects to transition a majority of the production to other facilities.

Transfers to other company locations will be offered to some employees. The company expects to provide assistance in finding future employment for those not offered transfers. Employees will receive eight weeks’ pay, Rodgers said.

In the news release, the company said the decision was difficult but necessary, and the shift of production to other facilities should improve the company's competitive position.

Pierre Foods acquired Rome-based Zartic on Dec. 11, 2006.

Last month, Pierre reported net revenues of $486.1 million, an increase of 46.5 percent, for the period from Dec. 2, 2006, to Dec. 1, 2007.

“While this was a difficult but necessary decision for the Company to make, the shift of production to other facilities combined with the stock-keeping unit rationalization initiative should improve the company's competitive position, while allowing the company to maintain its ability to provide customers with the quality products and services they expect from Pierre.”

Pierre is a leading manufacturer, marketer, and distributor of differentiated food solutions, focusing on pre-cooked and ready-to-cook protein products, compartmentalized meals, and hand-held convenience sandwiches.

Headquartered in Cincinnati, Ohio, Pierre markets its products under a number of brand names, such as Pierre™, Zarticᆴ, Z-Birdᆴ, Circle Zᆴ, Jim’s Country Mill Sausageᆴ, Clovervale Farmsᆴ, Chef’s Pantryᆴ, Fast Choiceᆴ, Rib-B-Qᆴ, Blue Stone Grill™, Hot ‘n’ Readyᆴ, Big AZᆴ, Chicken FryZᆴ, Smokie Grill ᆴ, and Chop Houseᆴ, and has licenses to sell sandwiches using well-known brands, such as Checkersᆴ, Rally’sᆴ, Krystalᆴ, Tony Roma’sᆴ, and Nathan’s Famousᆴ.
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