Vertis Communications, a provider of print advertising and marketing services, is closing three of its facilities in the wake of its merger with American Color Graphics, resulting in the loss of about 400 jobs.
The facilities being consolidated immediately are in Sylacauga, AL, with approximately 250 employees; San Antonio, TX, with about 90 employees; and Atlanta, with about 70 employees. The plants provided advertising inserts and newspaper products for leading retailers, newspapers and consumer services companies.
The majority of that production was discontinued earlier this month and is now being produced at other Vertis facilities.
The company also announced a phased consolidation of production at Vertis Communications‘ Medina, OH, facility. Earlier this month, 20 employees were released, but once the consolidation is completed in June, as many as 165 employees total may be affected, according to the company.
The Baltimore-based Vertis merged with its former rival, ACG, in October after filing for Chapter 11 bankruptcy as part of its prepackaged reorganization plan.
“In today’s competitive environment, successful companies must be responsive to client and market demands while maintaining diligent cost management,”said Doug Mann, SVP and general manager, inserts for Vertis Communications, in a statement to DMNews. ”While our recent merger with American Color Graphics results in tremendous benefits, we now have overlapping locations. We are taking aggressive actions now to improve operating efficiencies and ensure Vertis Communications‘ long-term success.”
Earlier this month, company CEO Mike DuBose announced he would step down effective January 1. Stephen Dyott was named vice chairman and Alex Sorokin as interim president of the company as it searches for a permanent CEO.