Thursday, January 07, 2010

Seems Brooklyn is beginning to feel Cleveland's pain

First the word Hogo Boss will close their operations in town, then this. Its likely only a matter of time before the PeeDee plant starts downsizing as more and more people go to the interwebs for the information.

American Greetings to consider alternatives to current Brooklyn headquarters - Crain's Cleveland Business
By STAN BULLARD  -  3:03 pm, January 7, 2010 
American Greetings Corp. (NYSE: AG) is undertaking a search for a new corporate headquarters that may take it out of its longtime Brooklyn home. 
Patrice Sadd, an American Greetings spokeswoman, said the company has told the 2,000 employees at its headquarters that it wants to see “what is available” following an income tax hike last year by the city of Brooklyn. 
The suburb last June 1 increased its income tax rate to 2.5% from 2%. 
Ms. Sadd said the search includes “looking at all our options.” 
That opens the door to a potential move outside Northeast Ohio or the state. Other states likely will call on the greeting card maker because of the public disclosure of its site search. 
Asked if a need to upgrade its global headquarters or adapt its size to changing staffing needs supported the drive for a search, Ms. Sadd said the tax issue brought the headquarters issue to a head. 
American Greetings set up shop in Brooklyn in 1956. All told, the global company employs 17,800 associates. 
Ms. Sadd said the company has retained an outside real estate consultant to conduct its search. She would not identify the consultant. 
Brooklyn Mayor Richard H. Balbier said addressing American Greetings' tax complaint would not be easy because the suburb's voters approved the tax hike in an election last May. He said he thinks there are more motives to the greeting card maker's search than the tax issue, such as a substantial amount of unused space at its 1 million-square-foot building. 
The mayor said he did not have a figure for how much income tax the company pays the city yearly. However, Mayor Balbier said losing the company would be a “tremendous loss.” 
“They are our largest employer,” he noted. 
He said he hopes to meet with the company soon.


Anonymous said...

I believe Cleveland (Brooklyn) needs to work with American Greetings to try and keep in Ohio. It would be a great loss. I have seen several companies in our area close or leave and it has left so many unemployeed and many of them are now homeless. It would be sad if Ohio cannot work out something with them. Makes me want to pack up and leave also