AC Linen of Norwich lays off 123 employees
Norwich — Atlantic City Linen Supply, which furloughed its workforce in March due to the coronavirus pandemic, has notified the state it is now laying off its 123 employees but hopes to reopen at some point.
The company, owned by Las Vegas, Nev.-based Pure Star, operated at 5 Consumers Ave., providing laundry services for hospitality clients that include Foxwoods Resort Casino and Mohegan Sun, whose laundry it continues to process at a facility in Somerville, Mass.
AC Linen, as the company is known, furloughed its employees around March 19, expecting that it wouldn’t be for more than six months, the company’s director of human resources, Debbie Martone, wrote last week in a Worker Adjustment and Retraining Notification Act, or WARN, notice with the state Department of Labor.
However, Martone wrote, government restrictions and economic conditions have resulted in “an unforeseen and unpredictable loss of liquidity, revenue and the ability to fully operate,” resulting in the layoffs.
“The company fully intends to resume operations once it is deemed to be prudent to do so …,” she wrote.
The layoffs affected 105 production workers, 17 drivers and one janitor, according to the notice.
"My understanding is that once COVID-19 caused everything to shut down, there just wasn’t enough work coming in,” Peter Nystrom, the Norwich mayor, said. “Right now, hotels are very limited. The casinos can’t sustain them.”
Norwich has experienced one of the highest unemployment rates of any municipality in Connecticut since the coronavirus struck.
Nystrom said the AC Linen shutdown has cost Norwich Public Utilities one of its largest natural gas customers. The recent closing of another business in the city, Freeport-McMoRan Copper Products, claimed one of the utility’s top electricity customers.
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