Broder Bros., a Trevose clothing distributor, said today that it eliminated about 140 positions to prepare for what it called "a further weakening in the U.S. economy."
The cuts span the company's distribution and call centers, management and other corporate operations. For severance payments and related charges, Broder said it will take a fourth-quarter charge of $800,000 to $1 million before taxes.
Although the privately held company has gained market share recently, it said it believes revenue and gross profit will fall in the fourth quarter compared with the same quarter last year and will keep dropping for part of 2009. Broder's concern centers on declines in demand for its high-priced products.
The company sells imprintable sportswear under the Broder, Alpha and NES brands. Its customers are companies that decorate the blank products for sale to customers, primarily for advertising and promotional purposes.