From 24 July 2006 around 85 employees will be retrenched as the Dandridge factory that sews nylon and polyester bags, is scheduled for lockup.
Cheap labour reflecting low cost products in international markets, made the company unable to compete, compelling to down its shutters.
The company is moving its operations offshore to the Dominican Republic and Costa Rica.
Another plant in Stearns, Kentucky is also closing removing about 100 workers.
The Kentucky plant provided support services for the Tennessee plant, by cutting out patterns and putting in trim, zippers and buckles.
In the absence of Dandridge factory, there was no need for the Kentucky plant.
The company used to make nylon and polyester handbags, cosmetic bags, backpacks and luggage and sold them to department stores in Europe and North America.