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Steuben to Shutter Factory

Post Time:Sep 07,2011Classify:Company NewsView:257

Steuben Glass will cease production on November 29, according to the 


Schottenstein Stores Corp., a private investment firm, purchased Steuben from Corning Inc. in 2008, after the business lost nearly $6 million in 2007. At the time, Corning officials said the company wanted to move away from the luxury glass business and into the innovative technology and the industrial component industries. However Schottenstein was unable to reverse the slide and never saw a profit, according to company spokesman Ron Sykes.


Some 60 workers will lose their jobs when the factory closes. (The factory is still owned by Corning Inc., which had leased it to Schottenstein. The lease was due to expire in 2012.) The Corning Museum of Glass will discontinue its Steuben line, and the flagship store on Madison Avenue in New York City will close.


Under a contract with Local 1000, since Steuben Glass failed within five years of the purchase, union workers for the former Corning Inc. can bid on open jobs at Corning for which they are qualified. 


Corning, which initially purchased Steuben in 1918, has reached a deal with Schottenstein to repurchase the Steuben brand name. However, Corning has no plans to re-enter the luxury glass business, according to Corning Inc. spokesman Joe Dunning. "It didn't fit our business model back in 2008, and it doesn't fit our business model now," Dunning said. "We have no plans to use it, but we are preserving the brand for any uses down the road."

 

Source: http://www.giftsanddec.comAuthor: shangyi

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