Vera Bradley to Close Indiana Plant

Citing costs that have continued to escalate, Vera Bradley Inc. plans to close its New Haven, Ind., factory, its only plant in the U.S., at a cost of about 250 jobs. The handbag and accessories firm, based in nearby Fort Wayne, Ind., plans to begin the closure in May. It has been producing at the plant since 2009 and it accounted for about 5 percent of its production. The move won’t affect the company’s 630 associates who work in other facilities in the Fort Wayne area. Total U.S. employment is about 2,300. Robert Wallstrom, chief executive officer, said the firm has “certainly taken pride in being able to produce a portion of our product in the U.S.” “However,” he added, “it costs approximately 90 percent more to manufacture goods domestically than in overseas factories, and our domestic manufacturing costs have continued to rise year over year.” Beginning in the fourth quarter of the current fiscal year, the closure is expected to result in annual cost savings of approximately $12 million. The company decided to close the plant “after careful analysis and consideration” over the last several months, Wallstrom said. He said the company hopes to find employment for some of the plant’s workers at other facilities in

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