Anaheim Mills Closes, Blames Energy Costs
Textile dyer Anaheim Mills Corp. has shut down, idling 125 workers and becoming the latest industry casualty tied to rising energy costs.
The company, which had been operating for a dozen years, closed its doors Friday, Vice President Steven Lieberman said. Anaheim Mills’ gas bill was six times higher than the previous year’s, making it “impossible for us to operate,” he said Monday.
Throughout the textiles industry, businesses are scaling back or closing down as a result of the soaring costs of natural gas, said Scott Edwards, president of the Assn. of Textile Dyers and Printers of Southern California.
“The rest of us . . . we’re cutting back as much as possible in an effort to save natural gas and stay in business,” Edwards said. He is vice president of operations for Chris Stone & Associates in Vernon, which recently laid off 12 workers, 9% of its staff.
The most significant jolt came from industry stalwart L.A. Dye & Print Works Inc., which closed one of its dyeing units this year and is in the process of shutting down. A total of 1,500 workers are losing their jobs, Edwards said.
U.S. Spectrum, a fabric dyeing company in Vernon, also has closed, dismissing about 80 workers, said Sam Lee, administrative director of parent company U.S. Dyeing & Finishing Inc. in Garden Grove. The Garden Grove plant has laid off about 50 people, one-fifth of its workers, Lee said.
U.S. Dyeing’s monthly energy bill has skyrocketed from an average of about $50,000 to more than $300,000, Lee said.
“We survive on a daily basis,” he said. U.S. Dyeing, like others in the industry, has added a 7% energy surcharge to its customers’ bills.
Anaheim Mills’ customers are taking their business to other companies in Southern California and on the East Coast, Lieberman said.
Anaheim Mills has been negotiating with natural gas brokers for more reasonable gas prices to allow it to restart its operations, Lieberman said.
The cutbacks and closures are unnerving for businesses linked to the industry, including DMS USA Corp., a Seal Beach firm that supplies machinery for textile businesses.
“The textile industry in California was very important,” said DMS general manager Parvis Hejazi. “That was one of the reasons we put our [sales] office here.”
