Hilo Hattie is slicing its cutting operations
Hilo Hattie will be phasing out its local fabric-cutting operation by Jan. 31, affecting 17 positions, the retailer said.
Some employees will remain with the local retailer.
"Some have already secured other positions within the organization," said Lena Young, Hilo Hattie's vice president of human resources. Other workers have applied for other positions, she said.
"We have (enough) positions within the retail organization, and it's up to them whether that is a career change they would like to take on," she said.
Employees who don't find a suitable position will receive outplacement assistance. "We have been discussing it with other organizations," Young said.
Other aspects of Hilo Hattie's garment manufacturing have long been outsourced to various countries in Asia, said Carlton Kramer, vice president of sales and marketing.
Elimination of the local cutting operation has nothing to do with the company's plan to move its flagship retail operation to the Royal Hawaiian Shopping Center, Kramer said. The two-story store, which will be 25 percent larger than the Nimitz Highway store, is to open in late 2007 or early 2008.
The company will continue to occupy the Nimitz Highway location, using it for corporate, accounting, sales, merchandising and uniform offices, as well as for warehousing and HiloHattie.com fulfillment operations.