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Facility Closures and Layoff Announcements (Oct. 21-27)

A Weekly Listing of Future Corporate Downsizings
October 24, 2007
Syntax-Brillian Corp. intends to close or divest, through a possible sale to a third party, that portion of its operations at 1600 N Desert Drive in Tempe, AZ dedicated to the manufacture of LCoS microdisplays and light engines. In either case, the company expects to have closed or divested the manufacturing business by year-end 2007.

The following future closings and permanent mass layoffs were reported in California.
· Coen Company Inc. is closing down and laying off 51 employees at 1510 Tanforan Ave. in Woodland and 16 employees at 100 Foster City Blvd. in Foster City on Nov. 1.
· College Loan Corp. is laying off 145 employees at 14303 Gateway Place in Poway on Nov. 12.
· Con-Way Freight Inc. is closing down and laying off 90 employees at 6301 Beach Blvd., Suite 300 in Buena Park on Nov. 1.
· Countrywide Capital Markets Division is laying off 66 employees at 4500 Park Granada in Calabasas and 95 employees at 1900 S. State College Drive, 4th floor in Anaheim on Nov. 12.
· Dan McKinney Co. is closing down and laying off 182 employees at 1455 East Riverview Dr. in San Bernardino on Nov. 1.
· Meade Instruments Corp., a leading designer and manufacturer of telescopes and riflescopes, today is planning a reduction in headcount at its Irvine manufacturing facility at 6001 Oak Canyon.
· The Impac Cos. is laying off 122 employees at 19500 Jamboree Road in Irvine on Nov. 10.
· Washington Mutual is laying off 90 employees at 8954 Rio San Diego in Camino De La Siesta on Nov. 14.
· Wells Fargo Home And Consumer Finance Group is laying off 50 employees at 24 Executive Park in Cypress on Nov. 13.
· Western Sequoia Corp. is laying off 113 employees at 401 South Prairie Ave., Suite 105 in Inglewood on Nov. 1.
· Zapp Packaging Inc. is closing down and laying off 77 employees at 200 North Berry St. in Brea on Nov. 1.

GMAC Mortgage is closing down and laying off 60 employees at 4 Corporate Drive, Suite 300, in Shelton, CT, starting last week and rolling through Nov. 30.

The following future closings and permanent mass layoffs were reported in Indiana.
· ATA Airlines Inc. plans to lay off 94 employees at 7337 W Washington St. in Indianapolis on Dec. 1.
· Cenveo Corp. is closing down and laying off 51 employees at 7301 Woodland Drive in Indianapolis on Nov. 21.
· Select Snacks Inc. is closing down and laying off 245 employees at 125 Peacely St. in Jeffersonville on Dec. 10.

A.O. Smith Corp. is closing two of its U.S. motor operations. The weaker than expected housing market has negatively impacted existing plant utilization rates in its residential hermetic motor business. Therefore, its decided to accelerate the closing of its operations at 636 Holt Drive in Scottsville, KY, and at 709 A O Smith Road in Mebane, NC, and relocate the production to Mexico. The transfer of work at both facilities will be completed by the fourth quarter of 2008.

Aurora Loan Services LLC is laying off 160 people at 400 Professional Drive, Suite 100, in Gaithersburg, MD, on Nov. 5.

The following future closings and permanent mass layoffs were reported in Massachusetts.
· Boston Scientific Corp. plans to eliminate approximately 2,300 positions worldwide, or approximately 13 percent of an 18,000-person, workforce. The reduction activities will be initiated this month and are expected to be substantially completed worldwide by the end of 2008. In addition, another approximately 2,000 employees are expected to leave the Company in connection with the previously announced business divestitures. Boston Scientific is based at 1 Boston Scientific Place in Natick.
· Solo Cup Co. intends to close manufacturing facilities at 177 Florence St. in Leominster, and at 1175 Wheeling Road in Wheeling, IL, and shift production and employment to other manufacturing locations, including North Andover, MA, and Chicago, IL. The Leominster and Wheeling plants are expected to close by Dec. 31, and Feb. 28, 2008, respectively.
· Vision-Sciences Inc. will be consolidating all of its manufacturing operations into its current facility in Orangeburg, NY. As a result of this consolidation, it will be closing its manufacturing facility at 9 Strathmore Road in Natick. The Company will transition this consolidation in a controlled fashion with the closing to occur over the next 12 months.

The following future closings and permanent mass layoffs were reported in Minnesota.
· GMAC Financial Services is restructuring its mortgage operations, Residential Capital LLC (ResCap), as severe weakness in the housing market and mortgage industry continues to prevail. ResCap will streamline its operations and revise its cost structure, which will include reducing its current worldwide workforce of 12,000 associates by approximately 25 percent, or by approximately 3,000 associates, with the majority of reductions occurring in the fourth quarter of 2007. The workforce reductions will include a range of administrative and managerial positions. Business units most affected by lower mortgage market origination volumes will incur the most reductions. All eligible associates affected by this workforce reduction will be provided severance packages and outplacement assistance. ResCap is based at 8400 Normandale Lake Blvd., Suite 250, in Minneapolis.
· Weyerhaeuser Co. will indefinitely curtail a laminated strand lumber plant at 19586 County Road 102 in Deerwood before year-end 2007 due to the decline in North American housing starts. The Deerwood plant produces engineered strand lumber, with 158 employees and a capacity of 6 million cubic feet per year. The plant is one of three such company operations.

The following future closings and permanent mass layoffs were reported in Missouri.
· 3M is laying off 240 employees at 5400 Paris Road in Columbia on Dec. 5.
· Wagner Industries Inc., which has two locations in Kansas City, is laying off 90 employees on Nov. 11. Wagner has operations at 1201 E 12th Ave. and 1601 Saint Louis Ave.

Salem Baking is closing its plant in at 3121 Indiana Ave. in Winston-Salem, NC, to open a new 50,000-square-foot facility in Mocksville, NC. The specialty cookies and cheese straws wholesaler will house its plant on 9 acres near U.S. 601, across from County Lane. Salem Baking will more than double its staff to 75 people at the Mocksville facility, according to reports. The plant will also include a retail store. Delivery on the Mocksville plant is scheduled for the spring of 2008.

Ply Gem Industries Inc. will close its Denison, TX, facility at 1601 Commerce Blvd. affecting 180 employees. Production will begin to be shifted to the other locations during November 2007 and production is expected to cease at the Denison facility in February 2008.

U.S. Foodservice Inc. plans to invest $100 million in capital projects that will significantly expand its operations. These include the construction of a new facility in Ogden, UT, and major expansions of current facilities in Boca Raton, FL, and Plymouth, MN. In Ogden, U.S. Foodservice will build a new full-service, broadline food distribution facility on 36 acres of land it recently purchased. The ultra-modern, multi-temperature 265,000-square-foot facility will be designed to accommodate future expansions in the Intermountain West region - one of the fastest growing areas in the country. The new site will initially employ approximately 300 people, and will replace the facility currently in Clearfield, UT. Distribution is expected to begin there in late 2008. In South Florida, U.S. Foodservice is adding 123,000 square feet to its existing facility in Boca Raton. When completed in approximately 18 months, the 300,000-square-foot facility will allow U.S. Foodservice to consolidate its existing Pompano Beach, FL, operation into the Boca Raton facility when complete. In Plymouth, MN, U.S. Foodservice is increasing the size of its existing facility to add 100,000 square feet of new space which will allow for expansions to the dry warehouse, refrigerated dock space, and freezer. This will result in a 50% increase in the facility's capacity.

The following future closings and permanent mass layoffs were reported in Virginia.
· Ridgeway Furniture Co is closing down and laying off 70 employees at 1131 Mica Road in Ridgeway starting this week.
· The Sharper Image is closing down and laying off 40 employees at 1700 Ruffin Mill Road in Colonial Heights on Jan. 18.
· Time Warner Inc's Internet unit AOL will eliminate 2,000 jobs as part of an ongoing restructuring. The cuts, which begin last week, amount to about one-fifth of AOL's global work force and are spread across operations in the U.S. and in Europe, where the company has sold off its Internet access businesses. As part of that AOL, which employs 4,000 people in Dulles, VA, will lay off 740 people at 2000 AOL Way in Dulles, by Dec. 14.

Celebrate Express Inc. relinquished 22,814 square feet of office/warehouse space at its headquarters space at 11220 - 120th Ave. NE in Kirkland, WA. The remaining leased premises consists of 17,950 square feet. Celebrate paid a termination fee of $28,938.

This report on recent downsizings is excerpted from Watch List, a weekly column of distressed commercial properties, mortgages and corporate news.
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