Lakeside Book Co. set to shutdown Menasha facility, lay off 339 employees
MENASHA — Lakeside Book Co. will permanently close its print production facility in Menasha and lay off 339 employees, according to a notice filed with the state.
The company decided to shutdown the facility at 800 Midway Road "due to changing market conditions," according to a letter the company sent to the Wisconsin Department of Workforce Development, signed by Dirk Hiler, president of book operations.
Lakeside Book Co. expects layoffs to begin June 7 and continue until the entire plant closes June 21, the letter states.
Employees learned about the closure early Tuesday morning, according to Scott Miller, president of District Council 1 Fox Valley Local 77-P, one of the unions that represents workers there.
"It's unfortunate to see a company that's been in the Fox Valley and in this area for so long just no longer be a part of it anymore," said Robby Neveu, the union's vice president and a press operator at the Menasha facility.
Members of the same family work together at the plant, according to Neveu. Some people are just starting their careers, while other longtime employees "expected to walk out the doors on their own terms, and they don't get that option now."
"I feel very heartbroken for them," Neveu said. "... It is a shock."
Menasha Mayor Don Merkes said, "The closure is a devastating blow to both the people working there and the community."
Menasha facility part of other Lakeside closures
Headquartered in Warrenville, Illinois, Lakeside is a book printing, binding and distribution company.
In addition to Menasha, the company will also shutdown facilities in North Chelmsford, Massachusetts, and Cumberland, Rhode Island by the end of the year, as part of "plans to consolidate its manufacturing footprint," according to a news release Tuesday.
"While it is extremely difficult to move toward ceasing operations at locations with such skilled team members, this decision will position us for sustained growth by maximizing the capabilities of our platform," Dave McCree, Lakeside's CEO, said in the release.
McCree added, "Our colleagues in North Chelmsford, Menasha, and Cumberland have performed exceptionally well. This decision is no reflection on their efforts, and we will be assisting each of them in any way possible as they transition to their next career step, either within our company or to another position."
Operations will transition to other Lakeside Book facilities, the release states, and leaders will work "closely with all affected team members, providing severance packages, job placement assistance," and other support.
The company employs about 190 people at two other facilities in the Menasha area on Lake Park and Brighton Beach Roads, which are part of the company's book fulfillment services business. Those will remain open, Balakrishna said Tuesday.
Lakeside 'tried to reduce costs' before shutting down Menasha
In late 2022, The Post-Crescent published a story about how book sales rose to unprecedented levels during the COVID-19 pandemic, and what that meant for book manufacturers in Wisconsin, including Lakeside and Worzalla —the latter of which is now known as Sheridan Worzalla, and it eliminated about 60 positions in Stevens Point late last year.
In that article, McCree, Lakeside's CEO, said he couldn't definitively predict what 2023 would hold, since business depends on what books get published. The Menasha facility produces education materials for elementary and high schools, including softcover work books. At the time, McCree said he expected that education market to "stay strong."
More: Menasha school board votes to close Jefferson Elementary School after this school year
On Tuesday, The Post-Crescent asked Lakeside about the "changing market conditions" that led to Menasha's closure.
"Demand for four color books for the education market has dropped over the last few years, and we do not expect that demand will return to historic levels," according to Rajeev Balakrishna, general counsel and chief compliance officer.
The Menasha plant underwent voluntary and mandatory layoffs in the back half of 2023, Balakrishna confirmed.
"We tried to reduce costs temporarily as a result of falling volume, hoping and anticipating that the volume would return," according to Balakrishna. "Unfortunately, that volume has not returned, and we do not expect it to come back in the future at the same level. As a result, regretfully, we are taking the difficult steps we have announced today."
Closure of Menasha facility is 'very devastating,' union president says
The facility at 800 Midway Road was built in 1946 by Banta Corp. It later was acquired by R. R. Donnelley & Sons Co. before joining Lakeside in 2007. Banta Corp., meanwhile, was founded as George Banta Printing Co. in 1901.
"Banta has been an important part of Menasha for over 100 years," Mayor Merkes said, "providing good jobs for generations of families and playing [a] large role in civic life from leading as the Mayor of the City as well as donating to Menasha treasures like Calder Stadium."
Lakeside's announcement Tuesday was "very devastating to people," according to Miller, union president.
Miller understands how it feels, he said, because he worked at the R. R. Donnelley plant near the Menasha dam that closed a little over a decade ago.
Local 77-P expects to start talking with Lakeside next week about things like severance, health insurance and vacation buyouts, according Miller.
"Each employee impacted will receive a written 60-day notice of position elimination and will be paid all earned wages and agreed upon benefits at the time of their termination," according to the letter Lakeside sent to the state.
The company added, "Due to the nature of a plant closing, there will not be any 'bumping rights' that would allow an employee to bump or displace another employee working for the Company, even for those union employees who might otherwise have such rights under different circumstances."
Reach Becky Jacobs at bjacobs@gannett.com or 920-993-7117. Follow her on Twitter at @ruthyjacobs.
This article originally appeared on Appleton Post-Crescent: Lakeside Book Co. will close Menasha facility, lay off 339 employees
