Updated: 6/15/2009 8:53:49 PM
Volunteer Fabricators will close down July 31. The manufacturer, which builds hotel furniture, has two plants.
Tommy Eggleston, Vice President of Operations for Volunteer Fabricators, said 115 employees in Sneedville and 30 workers in Bean Station will be laid off.
"To go around and announce to every employee that we were going to have to close our doors was a tough thing to do," said Eggleston.
Eggleston said orders are down 80 percent, compared to 2008.
"They just quit building hotels," Eggleston explained.
Volunteer Fabricators said they tried to escape a complete shutdown. The company laid off 40 workers beginning in January. In March, work hours were reduced to 32 hours a week for every employee. In May, the plants shut down for 10 days in hopes of saving money.
The company plans to mothball its two plants. Eggleston hopes a buyer will come along and purchase the properties.
Hancock County Mayor Greg Marion said the county boasted 500 manufacturing jobs 10 years ago. Only 25 manufacturing jobs will remain, after Volunteer Fabricators and other companies have moved or closed down.
Marion said he has not spoken to any manufacturers lately who are interested in moving to the county.
"We had two [manufacturers] last year before the economy went sour. Since then, both of those have said 'Don't call us--we'll call you,'" said Marion.
According to state figures for the most recent month available, Hancock County's unemployment rate sits at 13.1 percent.
