B.F. Rich closes its doors, laying off 130 workers
B.F. Rich Windows & Doors is going out of business after nearly 60 years, laying off all of its roughly 130 workers.
The Ogletown-based manufacturer of energy-efficient doors and windows informed employees and customers this week of plans to close later this month. In a statement confirming the decision, company officials said B.F. Rich had been struggling for nearly a decade.
"Unfortunately, despite a long legacy of achievements, B.F. Rich has experienced financial setbacks dating back to the beginning of the Great Recession in 2007," the statement said. "This situation could not be sustained."
Sources familiar with the company said B.F. Rich had been close to selling the business, but a deal fell through in recent weeks. No further details about the potential sale were immediately available.
Company officials declined to say if workers would be offered severance packages. However, multiple workers who contacted The News Journal said they were informed no severance would be offered. Those workers also said because the company is going out of business, they will not qualify for an extension of their health benefits under federal law. That will force the workers to buy their own health care in the marketplace.
Union employees, who hold manufacturing, shipping and delivery positions, had been working without a contract for about a week. Those 90 employees, who are members of the United Steelworkers Union, were informed of the decision to close on Monday during contract negotiations.
As of Wednesday afternoon, B.F. Rich had not submitted a so-called WARN notice to the Delaware Department of Labor. Federal law requires companies to notify the state before a plant closure or mass layoff.
If B.F. Rich shuts down later this month, it could conflict with the WARN Act. The federal legislation mandates that companies with more than 100 employees notify state officials more than 60 days before a plant closure. However, faltering companies that sought to save their business through a sale or the influx of new capital are exempted from the 60-day requirement.
Founded in 1957, B.F. Rich grew to become the "leading manufacturer of energy efficient windows and doors in the United States," according to its website. The company serves 15 states along the East Coast from Maine to South Carolina and as far west as Ohio and Tennessee.
B.F. Rich had been recognized for its energy-efficient products. Door and Window Market Magazine presented it with the 2013 Green Giant Award for green principles and practices. In 2011, Window and Door Magazine, a separate trade publication, awarded B.F. Rich the Crystal Achievement Award for Most Innovative Plant, recognizing its manufacturing and product technology.
As recently as 2012, U.S. Sen. Tom Carper, D-Del., praised B.F. Rich as a top seller in the U.S. Department of Energy's High Performance Windows Volume Purchase Program, a federal initiative to connect consumers with energy-efficient products.
"B.F. Rich is one example showing us that businesses can thrive and support energy-efficiency initiatives at the same time," Carper said during a visit to the plant, according to media reports at the time. "Through the manufacturing of innovative energy-efficient windows, this company will help its customers decrease their energy usage and their bottom line. This is what I like to call a win-win for business and the environment."
It is not clear what will happen to B.F. Rich's manufacturing facility off Ruthar Drive. The award-winning plant is said to have "the latest advances in manufacturing and materials technology available."
Several high-profile Delaware companies have laid off workers in recent months, including AstraZeneca, DuPont and SevOne. However, B.F. Rich is believed to be one of the only companies in the state with more than 100 employees to go out of business entirely.
Contact Jeff Mordock at (302) 324-2786, on Twitter @JeffMordockTNJ or jmordock@delawareonline.com.