Converse is "scheduled to lay off up to" 70 employees
in NC this week, according to Gregg Krupa of the BOSTON
GLOBE, who also reports that Reebok is declining to comment
on "expected cuts in spending, which some current and former
employees say may include significant layoffs." Krupa, on
Converse and Reebok: "Sales of athletic shoes have been
sluggish for three years and although some industry
observers see the chance for a mild turnaround this year,
the bad times have clearly taken a toll." FL-based Sporting
Goods Manufacturers Association Exec Dir Gregg Hartley: "The
market has been less than solid for a few years now, but we
do expect some positive movement this year." Converse
spokesperson Helene Fletcher: "We're still slow at retail,
and it's not anything new. It's not a major layoff, but it
is one of the most significant ones we have had recently."
Krupa notes that Converse will lay off 7-8% of its
manufacturing work force in Lumberton, NC, "owing in part to
continuing soft demand for its traditional" Chuck Taylor
brand basketball shoes. Converse's second-quarter revenues
decreased by 27.2% to $57.1M, compared to $78.4M for the
second quarter of '98. At Reebok, net income for the second
quarter ended June 30 was $4.6M, or $.08 a share, compared
to $6.1M, or $.11 cents a share in '98 (BOSTON GLOBE, 8/24).
