Friction Holdings Announces Closure of Business
CRAWFORDSVILLE, Ind. December 11, 2008: Friction Holdings LLC (“Friction Holdings”) today announced that it intends to cease all operations on or about February 28, 2009. Friction Holdings has operations in Crawfordsville, IN and Greenwood, MS. The planned action will affect 461 employees in Crawfordsville, IN and 171 in Greenwood, MS.
During 2008, Friction Holdings pursued finding a strategic buyer for the business, but was unable to find any interested parties. After exhausting all possibilities, the Company is left with no choice but to cease operations.
“Over the last year, we have experienced significant improvements in operating performance that all Friction Holdings employees should be proud of. Unfortunately, these improvements have not been adequate to offset the impact of the loss of a significant portion of our customer base and our efforts to develop a plan to adequately reduce the cost structure of the business or locate a strategic buyer have not been successful,” said Daniel A. Gaston, President and CEO, Friction Holdings.
“We deeply regret the impact this difficult decision may have on the Crawfordsville and Greenwood workforces, their families, and communities. As always, we are committed to treating all employees with respect and fairness and we will work to make this transition as smooth as possible,” Gaston continued.
Friction Holdings has given a 60-day notice to affected employees, appropriate officials, and government agencies under the U.S. Department of Labor’s Worker Adjustment and Retraining Notification (WARN) Act. The Company will honor its contractual requirements covered by the bargaining agreement and will be working with state and local service agencies to provide training and other support for affected employees.