The Palm Harbor Homes manufacturer in Kyle plans on closing it’s doors within 60 days, laying off 129 employees. (Photo by Sean Kimmons)
by BRAD ROLLINS
Palm Harbor Homes Inc. expects to shutter its manufacturing plant in Kyle within two months as the company prepares to be taken over by a competitor after declaring bankruptcy, said Larry Keener, the company’s chief executive officer.
The expected closing will cost 129 people their jobs, according to a notice of anticipated layoffs filed with the Texas Workforce Commission. Company employees were told at a meeting on Monday that they can expect to be without work within 60 days, Keener said.
“There is the likelihood that it will be closing. It’s an issue of market conditions plus the assets of our company are being acquired” by Phoenix, Ariz.-based Cavco Industries, Keener said.
Cavco bid $84.9 million to buy Palm Harbor in a court-administered auction last month. Palm Harbor operates three manufacturing plants in Texas and Cavco has two. Cavco plans on closing the Kyle plant, located on Dry Hole Road, and keep the other four in operation, Keener said.
“We’re going to consolidate,” he said.
The roughly 10 salaried people affected by the closure make in the $70,000 to $80,000 range and most of them will be reassigned. The 119 hourly wage employees make an average of about $30,000 a year.
In addition to its solvency issues, Palm Harbor is challenged by what experts say is a declining industry. Revenue from manufactured housing has declined more than 70 percent in the last decade and sits atop research firm IBISWorld’s top ten list of dying businesses.
“It’s unfortunate but we knew it was going to happen at some point. It’s so sad to see something like that go away but we’re really directing focus on our growing target markets,” said Kyle Economic Development director Diana Blank.
