Gulistan Carpets Closing Down, Putting 400 Out of Work
Gulistan Carpeet is closing down the plant on N.C. 5 in Aberdeen. Photo by Glenn Sides.
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The New Year won't be too happy for employees of one longtime Aberdeen manufacturing business.
Gulistan Carpet is closing its operations in Aberdeen and Wagram, eliminating nearly 400 jobs, according to a letter the company has sent to employees. A majority of the jobs lost will come from the larger Aberdeen facility.
The Aberdeen property has been owned by several companies and has produced textiles and carpets there since 1957. Gulistan Carpet Inc. has been operating there since 1995. At one time, the plant was the largest employer in Moore County.
The letter, which has been confirmed for The Pilot by an anonymous company employee, was sent out Friday to employees. The letter states that the company is "in the process of permanently winding down all operations" at its facilities on N.C. 5 in Aberdeen and on Airbase Road in Wagram "beginning immediately and continuing over the course of approximately the next four months."
Messages left for representatives from Gulistan Monday were not returned.
The news of the closing caught many off guard.
Aberdeen Mayor Betsy Mofield said the closing is "awful" and "a terrible blow to the economy of Moore County."
"That business was a main staple of industry in Aberdeen for a very long time," the mayor said.
Aberdeen Commissioner Robbie Farrell said he can't remember a time in his life without the mill.
"It's been there all my life," Farrell said. "I don't remember a time when some company wasn't operating that mill."
Farrell said he recalls working in the plant for three months in the summer of 1966. He worked in the shipping department prior to going off to college that fall.
"I remember putting labels on those carpets that were going to Australia, Canada and other countries," he said. "They were being shipped all over the world. This in not only a loss to Moore County but it is also a loss to the region."
Nick Picerno, chairman of the Moore County Board of Commissioners, said his heart goes out to everyone who is affected by the closure.
"Being that we are a relatively small county, I have a lot of friends who are going to lose their jobs," Picerno said. "And it saddens me to see good, hardworking Moore Countians lose their jobs. But we as commissioners will continue to work hard to bring businesses to the county and try to get these people opportunities to be re-employed."
The letter indicates that employees will be terminated "incrementally in conjunction with the winding down of operations, which will result in the layoff of the company's approximately 395 full-time and part-time employees."
The letter also provided each employee with a itemized list estimating termination dates. The layoffs are to occur over the next four months, according to the letter.
The letter indicated that the company has made "substantial efforts" over the past few years to restructure its debts and its business and continue to operate or postpone the shutdown. Those efforts, the letter states, "have been unsuccessful to date."
Mofield said had she had known about the company's troubles earlier, the Town Board would have tried to work with company officials to prevent the closing.
"I don't know that there is anything that we can do at this point to encourage them to change their mind but we will definitely try," she said.
The letter indicates that some company assets were sold through a private sale conducted by Bank of America, and that Gulistan intends to file for Chapter 11 bankruptcy for the "orderly sale of the remaining assets."
'Window of Time'
Pat Corso, executive director of Partners in Progress, the county's economic development agency, said the organization will be working with the N.C. Department of Commerce to help find a buyer for the business.
"Because they are winding down operations, I think there is still a window of time to work on that," Corso said.
Gene Norton director of the Aberdeen office of the state Division of Employment Services, said his office had been informed by Gulistan of the elimination of about 40 jobs in December.
"Apparently there is more to it than what they told us," Norton said. This is going to be impactful, especially to those who are going to lose their jobs. It is not going to help the economy overall."
Norton said Moore County's unemployment rate has decreased over the past three months, and could go down again in December, because the full brunt of the Gulistan closing won't be reflected yet.
Norton said the impact of the lost jobs on the economy will be determined by how many of the employees are laid off at any one time.
"How much this effects the economy will be how quickly they (Gulistan) get folks laid off, and then how quickly we can get them back to work," Norton said. "The economy in Moore County s not able to pick up 300 people at any one time, but one thing that will help us is this is likely going to be over a period of time."
Norton said he, along with officials from Partners in Progress and Sandhills Community College, hope to meet with representatives from Gulistan soon to discuss options for those employees who will lose their jobs. He said his goal is to be able to work with Gulistan employees while they remain employed and help them get resumes ready and learn about retraining options.
Long History
The carpet mill, currently owned by Gulistan Carpet, has a long history in Aberdeen.
The company began manufacturing under the Gulistan name in 1924, but the company's roots go back to an Armenian textile importer who founded a business in Turkey in 1818, according to the company website. His only children, Arshag and Miran Karagheusian, inherited their father's business.
Gulistan, which is the title of a 13th century Persian poem, means "garden of roses," purchased its Aberdeen plant in 1957. Seven years later, in 1964, Stevens & Co. purchased A&M Karagheusian and the Gulistan name.
In 1988, JPS Textile Group Inc. purchased the firm, and the division became JPS Carpet Corp. In 1995, in-house mill executives bought the company and renamed it "Gulistan Carpet, Inc."
The closing is the second large business to close its doors in Moore County this year. The American Growler plant in Robbins closed in October, putting about 50 employees out of work. The company built vehicles for the U.S. military. The last major textile manufacturing business to close in the county was Carthage Fabrics, which shutdown in 2007.
"I hate to see it go, " Farrell said. "The only thing we can hope now is that another company will come in there and find another use for the building and bring back at least some of those 400 jobs."
Contact Tom Embrey at (910) 693-2484 or tem brey @thepilot.com.
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Comments
JD 4 months, 2 weeks ago
"The only thing we can hope now is that another company will come in there and find another use for the building and bring back at least some of those 400 jobs."
Indeed. Good luck and hope the best for the families involved.
teufelhunden 4 months, 2 weeks ago
Yes, hope the families involved will be blessed this year.
Courseaire 4 months, 2 weeks ago
What a time to have the rug pulled out from under you.
buddysmith 4 months, 2 weeks ago
thats what this company gets for trying to earn a profit, how dare they, this is the new america. profits be damned. maybe comrade obama will bail them out!!!
JeremyG 4 months, 2 weeks ago
There are 2 very different lifestyles side by side. Those suffering like the people who worked a that plan and those behind those gates on golf courses. The 99% have already gone off a fiscal cliff of their own while those at the top are doing just fine.
TooHot 4 months, 2 weeks ago
OK Mofield. What could you have possibly done to keep this company from closing other than buying 80000 rolls of carpet? Typical politician thinking that they can do anything meaningful in a business venture.
cooldaddy 4 months, 2 weeks ago
Well stand behind our Gov. to be and lower taxes.and increase incentives. ...you know...the things this administration loathes. SC and Virginia kill us. That is assuming we can even get a business to look at us. in the bigger USA economy.
JimRussell44 4 months, 2 weeks ago
Time to realize that Moore County has become a high end tourist and retirement destination. Medical jobs and the service industry are where the jobs are. The best bet for the county is to attract more people with large disposable incomes. Someone else can manufacture the red carpet, Moore County just needs to roll it out.
Onelove23 4 months, 2 weeks ago
The whole sistutaion is messed up because why would you send out letters and let your employes know that they no longer have a job? That goes to show how much they really cared for there people they couldn't even bring the employes in and sit them down and let them no in a decent matter that they were unemployed but u trust and believe GOD do not like ugly the head people did a lot of underhanded stuff to some good people and some they let do what they wanted to do but me i prayed for everybody from the head to the tail and believe that GOD is goin to bless each and everyone of those people and there families u don't just do people wrong and get by with it the head people can't even show there faces to the employees they didn't even have the guts to come say marry Christmas but made it there business to take the gift card away and didn't even inform the people about that and plus not even that they even took the thanksgiving dinner away but it's all good employees just pray and GOD will make away out of No way
JD 4 months, 2 weeks ago
...goes to show how much they really cared for there people they couldn't even bring the employes in and sit them down and let them no in a decent matter that they were unemployed but u trust and believe GOD do not like ugly the head people did a lot of underhanded stuff to some good people
Crazy run on sentences aside, 'sitting them down' you do realize that they have multiple shifts and couldn't tell everyone at once in some big to do, right? Sending out a letter is pretty standard.
Courseaire 4 months, 2 weeks ago
Most likely it was a WARN Notice: The Worker Adjustment and Retraining Notification Act (WARN Act) is a federal law that requires certain employers to give advance notice of significant layoffs to the employees and others. Layoff notice requirements are intended to protect employees, their families, and communities by giving employees a transition period in which they can adjust to losing their jobs, obtain other work, or pursue training for other work.
DaveyNC 4 months, 2 weeks ago
Onelove, that was an amazing, single sentence. Almost completely incoherent and not a single punctuation mark to be seen.
And as Courseaire notes, the law requires formal notice of layoffs, etc. A good way to do that and to document that you have done so would be to send a letter, don't you think?
teufelhunden 4 months, 2 weeks ago
Dang y'all, Onelove is obviously emotional about this-cut him/her some slack.
JD 4 months, 2 weeks ago
-cut him/her some slack.
If they write something coherent sure, but this twitter speak that is a block of text is an eyesore.
Toda 4 months, 2 weeks ago
"SC and Virginia kill us. That is assuming we can even get a business to look at us. in the bigger USA economy."
Toda 4 months, 2 weeks ago
Joe ask questions to the Moore County Board of Commissioners (MoF) why Lee County's Economic Development page has so many fortune 500 companies operating in our neighbors' job development initiative?
packwilleat 4 months, 2 weeks ago
This is from Onelove23........... "u don't just do people wrong and get by with it". I would like to flag this to the moderators of The Pilot as a possible threat to the owners of Gulistan.
mikemike 4 months, 2 weeks ago
Just Not Right!!!!
Toda 4 months, 2 weeks ago
What? Those run-on sentences that make absolutely no sense at all....
Onelove23 4 months, 2 weeks ago
It's no threat like I say God don't like ugly stop reading into stuff all the wrong way people that's what's wrong with American today did u not hear me put God all through what I said and how is it a threat and I don't even work there get your lives togeather people
Toda 4 months, 2 weeks ago
Anyone care to reply to Onelove23? I don't know where to begin....
mikemike 4 months, 2 weeks ago
So what do people do now? What for unemployment? Gulistan carpet has laid employees off with no benefits. People have been waiting for weeks with no pay since the first lay off. They don't care about employees they still have a job.
Courseaire 4 months, 2 weeks ago
God speaks in mysterious ways. Maybe onelove23 is writing on tongues or sniffing too much carpet glue. It's also possible that SPUWS has come back under another name.
packwilleat 4 months, 2 weeks ago
Onelove ~ just be careful of what you say regardless of how you "mean" it. Mike just posted about the need to incite a riot before he edited it. Acts of violence or inciting violence will not be tolerated. Remember this little incident from a couple months ago??
http://m.guardiannews.com/world/2012/aug/24/empire-state-building-shooting-two-dead
justpassingby2 4 months, 2 weeks ago
Let's make fun of the person who was holding down a job. My guess is he wasn't much better off working there than he would have been on welfare and collecting food stamps once you throw in an obamaphone. You should be ashamed of yourself! Toda you for one have written plenty of incoherent rants here and shown not to be able to follow along with simple debates. Maybe you can go to dusty's blog or facebook page and find my all caps posts to you after you couldn't stay on point and answer the simplest questions. And if you voted for obama TWICE, you have no room to question the intelligence of anybody else!
packwilleat 4 months, 2 weeks ago
To any employee of Gulistan that wishes to file a complaint.
Gene Norton, Director 245 Shepherd Trail Aberdeen, NC 28315 Phone: 910-944-7697
leftfield 4 months, 2 weeks ago
Onelove, I only have one thing to say....."Don't worry bout a thing, cause every little thing, gonna be alright"!
njc17 4 months, 2 weeks ago
From what I have read, Gullistan was on the block to begin with, in dire need of fiscal restructuring. In the business world or the manufacturing world [to be exact] it's dog eat dog, and Gullistan was no winning the fight. As to why?? we'll probably not know. Foreign competition, outdated manufacturing processes, inferior product? bad business practices? lots of variables there. Tell me, how many of you have Gullistan carpets in your home or business? It is sad, Gullistan and the carpet business in there before them were very neighborhood oriented, and that will be sorely missed. I do hope Corso and company can find a reliable business to replace it. As to the thought that this being a retirement and medical area, does not help the folks who work machines and and do other factory work. Retraining is not that great an option. The area can use way more manufacturing in the right places.
Mythreekids 4 months, 2 weeks ago
Gullistan has been in trouble a long time. And, I am sure there are a variety of reasons. Many of the employees have been there a very long time, earning fairly decent salaries. So, it is sad this operation is coming to a close. No different that other plant closings to the point that most manufacturing in Moore County is only a memory. The hospitality industry grows here with every new 'golf course' that's built. And, of course our hospital continues to grow. Many of our citizens travel out of county for employment, some even to South Carolina. As hard as it is to believe, mass import of most of our goods from China , and other places, did not start with the current President. Seems, we've out-sourced ourselves to the exent that Americans who want to work don't have anywhere to work.
But, yesterday is gone and we can't get it back. The question is, how can we begin to reverse this increasing trend going forward, without all the personal attacks, name calling, etc. which is like playing ping pong. Onelove23, God gave us the tools to work with. He expects us to do some things ourselves with those tools. Prayer is good. But, faith without work is useless. So, in Moore County, where do we start.
clarabelle 4 months, 2 weeks ago
" justpassingby2 - Let's make fun of the person who was holding down a job. My guess is he wasn't much better off working there than he would have been on welfare and collecting food stamps once you throw in an obamaphone. "
BLAH BLAH BLAH..............Don't you ever stop ? Never mind .......... I already know the answer!
JD 4 months, 1 week ago
you have no room to question the intelligence of anybody else!
Pot meet Kettle, Kettle meet Pot.
Toda 4 months, 1 week ago
justpassingby2 ~ What are you talking about? What does Facebook have anything to do with the topic? I know you have been smitten by my previous comments about you...that's okay, go ahead and continue to fire across my bow.
JD ~ I'm smarter than JPB2, so it's not a pot and kettle comparison.
Toda 4 months, 1 week ago
A problem exists with an absence of manufacturing technological programs that focus on machining and tool and die skill building. I mentioned Lee County's active roll in developing manufacturing jobs.
Check out CCCC's program: Computer Integrated Machining with and Emphasis in Tool, Die, and Mold Making
teufelhunden 4 months, 1 week ago
I'm smarter than JPB2, so it's not a pot and kettle comparison.- Toda
You are, are ya?
Hey just thought I'd say I'm bothered by the format of your posts. o _ o
Toda 4 months, 1 week ago
I am ... what about my formating troubles you?
packwilleat 4 months, 1 week ago
Toda ~ it's honestly unreadable. No one can tell who or what the subject is, or who the intended receiver is. Not trying to flame ya here, it can get a little head scratching at times.
steadycash2 4 months, 1 week ago
Curious...I wonder how many Gullistan employees voted for The Pilot's favorite son Obama. Do they have a clue that his administration, his regulations and his policies are to blame for yet another business failure. Maybe he will come down for a photo op, they can all get in line for some free hugs. 400 more Obamababies to pay for, thanks for the help Woronoff.
Toda 4 months, 1 week ago
packwilleat ~ "it's honestly unreadable. No one can tell who or what the subject is"
There are high paying jobs available for tool and die makers. Those jobs are found in manufacturing environments not on golf courses. With respect to Gulistan Carpets, most of their tool and die work was farmed out to local companies who had specialists on board.
Here's a question for you pack ~ if you click on the links I provided, see how many manufacturing companies are operating in Lee County. What is your observation as to why Moore County never benefited from location to our county?
Toda 4 months, 1 week ago
packwilleat ~ Since we are discussing issues on a civil level, there are several jobs available here in MooCo for CNC operators. Easy work and excellent pay. The problem exists with funding at SCC for technological advancement in manufacturing.
See the problem? Manufacturers who would consider moving to a "right to work state", would need skilled individuals for the processes of producing stamped or laser cut materials.
Toda 4 months, 1 week ago
steadycash2 ~ give it a break, Romney off-shored most of the American jobs to china and India.
by Tommy Davis
steadycash2 4 months, 1 week ago
Toda..... another uninformed, liberal, genius. Has all the answers. The country's problems can't have anything to do with Obama. (It is most likely Bush's fault, I hear he hates carpet) How about a government take over of carpet production? It could be all green.