Reply #17: Republic Windows & Doors to close, union angry

[Hannah Bell]

Republic Windows & Doors, once an emblem of corporate expansion on Goose Island, said it must shut down Friday because of inability to get financing.

It said more than 200 jobs will be eliminated. Amy Zimmerman, vice president of sales and marketing at Republic, said the shutdown was forced by Bank of America Corp., which withdrew a credit line because of the manufacturer's declining sales


The decision brought two busloads of Republic's unionized work force to Bank of America's Chicago headquarters, 231 S. La Salle. Members of the United Electrical Workers picketed outside the bank, saying the forced closure violates state law that requires a 60-day notice of mass layoffs.

Union leaders also said Bank of America was barring Republic from paying workers for the 60-day period or for accrued vacations. "It's shameless that this bank, after getting a federal bailout, is throwing them out penniless," said union organizer Leah Fried.

Zimmerman said Republic was the victim of "mismanagement on a grand scale" by prior owners, who ran up debt. The current company president, Rich Gillman, acquired Republic in 2005 and sold its sprawling plant at 1333 N. Hickory to Wm. Wrigley Jr. Co. for $31 million. Republic continued to occupy most of the space.

Sales have declined from about $75 million a year recently to about $42 million to date in 2008, Zimmerman said. "This was a business decision by the bank and we understand it," Zimmerman said. "We probably could have survived it had we had enough cash on hand."

http://www.suntimes.com/business/1313535,CST-FIN-republic04.article