Paramount Cards to close Pawtucket,
R.I., plant Founded in Rhode Island in 1906, Paramount Cards is the oldest and third largest greeting card company in the United States, with subsidiaries in the U.S. and Canada. “In order to maintain our value leadership, we have taken steps to streamline operations for more efficiency in the highly competitive greeting card business,” said Hamilton Davison, Paramount’s president and chief executive officer. “The Pawtucket plant’s age, combined with marketplace pressures that include increased use of inexpensive foreign production by our competitors, necessitated production consolidation into our newer facility in Canada, and an increased use of off-shore suppliers,” Davison said. “We delayed the closing of our Rhode Island plant as we considered alternatives, but the decision had to be made. “We will help employees who will lose their jobs, with a combination of severance and professional human resources advice and assistance as the workers affected by this production facility consolidation seek new employment,” Davison added. “This decision makes available to other local companies a wonderfully talented group of dedicated workers who might not be available otherwise.” Paramount Cards’ Canadian plant produces the majority of the company’s requirements, with the Pawtucket plant and overseas suppliers accounting for the rest. The company plans to shift the Pawtucket volume to its Canadian plant and overseas. Paramount’s production facility in Rhode Island was built in 1875 and occupied by the company since the 1970s. It includes 325,000 square feet on four levels. The Canadian production facilities in Cambridge, Ontario, also total 325,000 square feet and are designed in a continuous work flow format on a single level with high bay ceilings. The company said plans for its Pawtucket facility include a possible sale or lease. “In this consolidation, Paramount Cards will strive to be fair to its employees, and treat them with the respect and dignity that they clearly deserve,” the CEO said. “While this was clearly a very difficult decision, it was unanimously approved by board of directors.” He added that consolidating operations “will enable us to better serve a variety of customers such as grocery and drugstore chains, specialty shops and other retail outlets. In addition, our Cardsmart Retail unit operates a national franchise chain of card and gift stores where cards sell at half price everyday. As value leader, we must closely manage our supply chain and costs to offer best product quality and prices to consumers. With the large number of different cards in stock, managing them all from a single location will allow for greater inventory efficiency while keeping fill rates high.” The company is already one of the best in its industry in fill rates and order turnaround times. “Paramount Cards is an active and responsible corporate citizen of Rhode Island and we plan to continue our program of active community relations,” said Davison. The company’s headquarters location will remain in Rhode Island. In addition to its headquarters functions, Paramount Cards plans to maintain sales, marketing, customer service, and other administrative functions in Rhode Island. In addition, the company’s Cardsmart retail franchise store unit will maintain its headquarters, warehouse, operations, marketing, information technology and other support activities in Rhode Island. Located in Pawtucket, Rhode Island, Paramount Cards features a full line of more than 25,000 beautifully designed greeting cards. Paramount’s operating subsidiaries include Cardsmart Retail Corporation (www.cardsmart.com), a fast growing national chain of value priced card and gift stores; Image Craft, the second largest card publisher in Canada and supplier of more than 90 percent of the dollar cards sold in Canada; Premier Greetings division (www.premiergreetings.com), the USA leader in strategic value marketing; Lawson Falle (www.lawsonfalle.com ), the second largest Christian card publisher; Images From The Heart, which markets products including handmade greeting cards sold through www.cardshopinabox.com and Paramount International, a leading supplier of private label and custom produced cards and related products. |
