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June 2, 2011

Hyde Tools Lays Off 9

Hyde Tools laid off nine manufacturing floor employees last week, an executive with the company confirmed.

Corey Talbot, vice president of marketing at the Southbridge-based industrial blade and painting products manufacturer, said that the layoffs were prompted by two of the company's biggest customers reducing their orders.

The Merit Group filed for Chapter 11 bankruptcy last month. Lancaster Paint Sundries, a member company of the group, purchased its supplies from Hyde. Hyde had unsecured accounts receivable with Lancaster that it will likely not recover because of the bankruptcy, Talbot said.

Second, Home Depot recently started carrying less of Hyde's painting product lines, he said.

Talbot said the layoffs were difficult for management.

"Most of these people have been with us for a very long time," Talbot said.

The company now has 120 employees at its Eastford Road facility, he said.

Talbot said that many retailers looking to address slowing revenues are reviewing their products and what the pay for them.

"This is the way retail works now," Talbot said. "Large retailers are savvy with being able to find the best prices they can and they should be"

Marsha Montori, a spokeswoman for Hyde, said that the company is offering a retraining program for its displaced employees through the trade adjustment assistance program, which helps workers affected by international trade.

She said that competition from cheaper foreign products is part of the reason that Home Depot reduced its Hyde offerings.

The company has gone through several rounds of layoffs in recent years, citing downturns in housing starts and falling revenues at major home improvement retailers. In 2008, Hyde laid off 14 employees and in 2009 the company laid off 10 employees.

Correction: An earlier version of this story inaccurately reported the number of people laid off due to incorrect information provided by a company spokesperson.

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