OMC Closed

21 Dec. 2000

Outboard Marine Shutting Down Operations 'Indefinitely'

Dow Jones Newswires
2000-12-21 17:27 
By Richard Gibson
Portions of the text of this newswire are reproduced below
DES MOINES, Iowa -- Outboard Marine Corp., unable to secure critical financing, will slash its work force and seek to sell its worldwide operations.

... notified hundreds of employees by letter Thursday it "must shut down our operations indefinitely." Asked if they may not reopen, an senior spokesman replied, "That's a possibility."

.. wouldn't comment on speculation Thursday by company observers that a Chapter 11 bankruptcy filing might be necessary, perhaps as early as Friday.

.. most of OMC's 6,200-person payroll is likely to be laid off, and that a skeleton staff of perhaps 700 may remain at corporate headquarters in Waukegan, Ill., and several manufacturing plants. An industry source told Dow Jones that representatives had approached others in the boating industry about buying all or part of the company.

Notices distributed to employees at several meetings Thursday at the company headquarters and sent out by overnight mail Wednesday spelled out some of the company's intentions.

... "As a result, we must shut down our operations indefinitely, and regrettably, let go many of our valued employees."

The notice went on to confirm "the company's permanent layoff of about 1,190 employees" at its corporate offices at Seahorse Drive and nearby manufacturing plants.

"Should the company's operational situation change, we invite you to reapply for a position with the company," the notice added.

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