Grainger still working through divesture of brands
JANESVILLE — Grainger officials said Thursday it's premature to speculate on employment levels after the company sells a set of specialty brands now operating out of their Janesville and Madison facilities.
The Lake Forest, Ill.-based Grainger said last year it planned to sell some of its specialty brands to focus more closely on Grainger's core offerings and distribution capabilities.
That process has been going on for months, said Kelly France, a Grainger spokeswoman. The company hasn't finalized a sale or announced a buyer.
The specific brands Grainger plans to sell are:
-- Gempler's, serving those who work outdoors.
-- Ben Meadows, serving forestry professionals.
-- McFeely's, serving professional woodworkers.
-- Rand, serving facility and warehouse professionals.
-- Professional Equipment, Construction Book Express, serving inspection, electrical, HVAC, engineering and building professionals
France said local management updates employees every five or six weeks. Rumors circulating out of those "town hall" meetings are just that, she said.
"Anything about numbers of people impacted is pure speculation," she said. "We're continuing to work through the process."
In Janesville, Grainger employs about 800 people, France said.
In 2010, the city of Janesville made a forgivable loan of $227,500 to Grainger with the understanding that the company would sequentially add jobs over a three-year period that would result in a total of 130 new positions.
Vic Grassman, Janesville's economic development director, said that at the end of the first year of the agreement—May 31, 2011—Grainger's local employment was 810, one short of the 811 required in the agreement. Grassman said being one job short was satisfactory.
Grassman said he would survey the company again this May, which would be the conclusion of the second year of the agreement. At that point, he said, Grainger's local employment must total 873 or it could be considered in default of the city loan.
Feb 1, 2012 at 7:30 p.m.
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What is the difference between public "incentives" and blackmail? Consider the advancement of TIF districts over the last 30 years. How much better off are we today?
Feb 1, 2012 at 2:29 p.m.
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xcatch: I am not saying not to give incentives to companies. But sometimes, what is given to companies in incentives does not equal what we get back in job creation.
Feb 1, 2012 at 1:47 p.m.
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"This is why our representatives should change the way they give out incentives to companies."
What would you have them change? Would you rather they simply move 800 jobs from the area?
Feb 1, 2012 at 1:39 p.m.
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This is why our representatives should change the way they give out incentives to companies.
Feb 1, 2012 at 8:33 a.m.
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The company is required to add jobs sequentially-what are the sequential requirements? Maybe there is Obama-esque language about saving or creating jobs? "Grainger agrees to save or create 130-800 jobs over the 3 year period.."
Feb 1, 2012 at 7:29 a.m.
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It was more than 20 and the cuts will continue.
Feb 1, 2012 at 1:07 a.m.
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Grainger can do whatever they want to do! Heck yea they better do another head count! Good people lost their jobs today- and the ones left? Pretty much stripped of having any choices-if you want a job that is. You lose really any seniority-they don't use seniority as anything there-and they can move your scheduled shift hours anytime they want. In other words grainger feels they are SO powerful-they they can do ANYTHING they want to do!
Jan 31, 2012 at 9:07 p.m.
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I guess Janesville's Grainger is not only going to experience "divesture of brands" but also of employees. Today, 20 less jobs, what's next? Can our Governor possibly help?
Jan 31, 2012 at 10:53 a.m.
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I guess a new head count needs to take place. Several people are losing their jobs today there. Announcements were made this morning.
Jan 28, 2012 at 9:50 a.m.
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April 2010...400 people on office floor ( top floor). Rest is warehouse.
Jan 28, 2012 at 9:45 a.m.
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Today there is NOT 800 people there. Time for a head count !
Jan 28, 2012 at 8:31 a.m.
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If one adds 130 new positions (jobs) to the 800 existing jobs that would equal 930 total positions by May 31, 2013 wouldn't it? Is it New Math or Strange Math going on here? Janesville taxpayers will have subsidized each new job to the tune of $1,750 each. Plus, Grainger gets additional benefits of a TIF. I suspect they may still "reorganize" and leave with our taxpayers holding the empty bag. How much would our city have to spend in order to collect on a possible default? We should post signs at the city limits saying "Janesville - Home of Free Taxpayer Money for Wealthy Corporations." "- No Longer City of Parks" unless they are industrial ones.
Jan 28, 2012 at 7:44 a.m.
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Threats of loan default to Grainger will do nothing to make them increase employment. $227,500 is a paltry amount to a company that size. Why we lent money to a company with the thought that would make them add ~$6,500,000 worth of jobs is some pretty poor thinking.
Jan 28, 2012 at 7:05 a.m.
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What is the current status of remaining TIF funding in that district? Why should taxpayers be curious?
Jan 28, 2012 at 6:55 a.m.
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If Grainger made that loan agreement then they should be held to it by the letter.
Jan 28, 2012 at 6:47 a.m.
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IMO if they are 1 job short they then they are in default of the loan. I'm sure the contract does not stipulate 811 jobs plus or minus.
Jan 28, 2012 at 3:22 a.m.
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I am a dire hard conservative, and believe in free markets. However, I can't get over companies that continue to buy others just to piece them out and sell them to others to only take a temporary gain. This is a perfect example. It has to be what they are teaching them in those liberal college classes they are taking....LOL
Jan 28, 2012 at 12:42 a.m.
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Hmmmmm.
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