Monday marked the first day of about a two-month furlough for some 200 workers at the Remington plant in Huntsville.
Workers are expected to return in early to mid-August, according to reports. Calls to Remington were not returned. Huntsville city officials were not available for comment.
The Alabama Department of Commerce said it provided Remington with information to help the affected workers.
According to reports, the furloughs were part of companywide layoffs across the company’s plants in Ilion, N.Y.; Lonoke, Ark.; and Huntsville.
It’s been almost a year since the nation’s oldest firearms manufacturer emerged from Chapter 11 bankruptcy. The bankruptcy saw $775 million in debt converted to equity and the company received $193 million in a new lending package funded by seven banks, including Bank of America.
Following the company’s bankruptcy, the City of Huntsville renegotiated the original incentive package that was put in place when Remington decided to locate in Huntsville.
The city council approved the new deal in November that gave Remington an extra three years
to meet its objective of employing 1,868 employees or the company forfeits its $12.5 million
incentive package provided by Huntsville, the Madison County Commission and the
Industrial Development Board.
The company has also lost $3 million from a withheld cash incentive payment from the state and repaid more than $500,000 for failing to meet various job and payroll targets, which was part of an overall $70 million incentive package, according to reports.