By Business Insider Staff,Bailey Metal Processing is shutting down, the company announced today.
In a statement, the firm said it was “deeply disappointed to announce” it would be ceasing operations.
The statement said that the closure of the company’s operations was necessitated due to “significant” costs to the Company and the community, and the effect that the Company’s closure will have on the businesses that employ its workforce.
“Bailey is a small metal processing company located in Southern California, and we were able to maintain operations as a small business with the help of our local community, employees and investors, Bailey said.
The closure of Bailey Metal Processors is the result of our inability to compete with companies in the market for the best quality metal processing equipment, which is now being phased out due to the impact of the transition to the “post-industrial” economy, Bailey added.
Bailey’s decision to close operations was not based on any specific reason, the statement said.
However, the closure will result in the loss of approximately 2,500 jobs, with the company said to be preparing a transition plan that will provide for the loss in employment.
Baiceys employees will receive severance payments in the amount of $15,000, the amount being phased in over a period of five years, Bailey’s statement said, without specifying the amount.
Baishon Metal Processing, which also operates as Bailey Metal, is also closing, the announcement said.
The company is expected to continue operations at its new facility in Irvine, California, as well as its existing facilities in Riverside, California.
In its statement, Bailey stated that its business was “struggling to keep pace with the demand for our products and services,” and that the company had lost over $4 million in market value, with some of that loss attributable to the closure.
As a result of the closure, the business will no longer be able to offer the services it once provided, the release said.
Baayla Metal Processing was formed in 2003, and employs approximately 350 people, according to its website.
The closure of both companies comes on the heels of a similar move by metal processing giant Lidl to discontinue its operations in South Africa after more than 50 years in the country.
Lidls decision comes as the country is under a global economic downturn, with unemployment at an all-time high of 13 percent.