Russell Corporation
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| Type | Subsidiary |
|---|---|
| Founded | 1902 |
| Headquarters | Alexander City, Alabama |
| Industry | sporting goods |
| Products | Athletic shoes, apparel, sports equipment, accessories |
| Revenue | $1.438 billion (FY 2005)[1] |
| Owner(s) | Berkshire Hathaway |
| Website | http://www.russellcorp.com/ |
Russell Corporation, headquartered in Alexander City, Alabama, is a manufacturer of athletic shoes, apparel, and sports equipment founded by Benjanmin Russell in 1902. Russell markets its products under many brands and subsidiaries, including Russell Athletic, Spalding, Huffy, and Brooks.
Formerly a publicly traded company, Russell Corporation has been a wholly owned subsidiary of Berkshire Hathaway since 2006.
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[edit] Berkshire Hathaway sale
On 1 August 2006, Russell shareholders approved the sale of their firm to Berkshire Hathaway for $18.00 per share in cash. The acquisition was successfully completed on the following day, 2 August. Russell's brands joined Fruit of the Loom in the Berkshire Hathway family of products.[1]
[edit] Honduran Factory Closing
In 2008, Russell made the decision to close its Jerzees de Honduras manufacturing plant. It was one of eight facilities the company closed during a 12 month period. Of these eight facilities, seven were non-union.
The Worker Rights Consortium has documented violations of the rights of workers by Russell in its factory Jerzees de Honduras. The report alleges illegal firings. It also states death threats were allegedly made against some members of the union. The report states: "To be clear, the WRC has seen no evidence to indicate that company management played any role in the issuance of these threats." [2] In response, several universities have canceled their contracts with Russell, including Duke University, Georgetown University, University of Columbia, University of Michigan, University of Miami, University of Washington, University of Houston, Penn State University, Rutgers, University of Wisconsin-Madison, Purdue University, Cornell University, and the University of Florida.[3][4][5][6]
Russell says it is being unfairly targeted by the union and an independent report by the Fair Labor Association supports the company's assertion that the plant closure was due to the general down turn in the world economy[7]. Several schools, including Princeton University, the University of Georgia, Western Kentucky University and Georgia Tech, have announced they plan to continue doing business with Russell[8][9]. The company has issued a statement noting that it had recognized the unionization of the Jerzees de Honduras plant on October 3, 2007. In 2008, the average takehome pay of Russell workers in Honduras was 26% above the national minimum takehome pay and workers at its plants receive benefits such as meals and medical care.
[edit] Corporate influences
Throughout its history, Russell Corporation has been involved in the manufacturing and selling of equipment for many professional, collegiate, and high school sports teams. Most notably of these are its stint of manufacturing uniforms for Major League Baseball, the production of official basketballs for the NBA (through its subsidiary Spalding), and the production of official footballs for the AFL (also through Spalding). Russell also makes uniforms for select high school and college baseball and football teams, which is one of the corporation's major divisions.
[edit] Timeline[10]
- 1902 - The Russell Manufacturing Company is incorporated with Benjamin Russell as president. Assets include eight knitting machines and twelve sewing machines. The first finished product is a ladies' undershirt, or summer-weight vest. The mill's beginning capacity is 150 garments daily.
- 1912 - Electricity is installed in the Russell plant.
- 1914 - Russell purchases the Marble City Mills in Sylacauga, Alabama, but a cyclone demolished the plant that was covered by every known insurance, except windstorm.
- 1925 - Long underwear, sweaters, athletic shirts and ladies' bloomers are added to the production of ladies' vests, making a more complete product line.
- 1930 - The product line is again expanded to include fleece lined sweatshirts.
- 1932 - Russell acquires Southern Manufacturing Company which gives the company access to team apparel. This is the beginning of the Russell Athletic division's cutting and sewing operations.
- 1938 - Russell begins making woven athletic garments, including basketball, baseball and football pants and jackets.
- 1945 - Benjamin C. Russell dies and is succeeded as president by his brother, Thomas D. Russell.
- 1962 - Russell Manufacturing Company's name is changed to Russell Mills, Inc.
- 1967 - Russell develops the tear-away jersey.
- 1973 - Russell Mills' name is changed to Russell Corporation.
- 1983 - A line of styled sportswear and a line of basic T-shirts bearing the JERZEES label is introduced.
- 1985 - Russell's Common Stock begins trading on New York Stock Exchange (NYSE) on December 26, 1985.
- 1989 - Russell Corporation purchases Cloathbond, Limited, a knit apparel manufacturer in Livingston, West Lothian, Scotland. The name is later changed to Russell Corporation UK Limited.
- 1991 - Russell Corporation introduces NuBlend, a revolutionary poly/cotton fabric that virtually eliminates pilling. Russell also embarks on a massive recycling program with facilities located in Alexander City.
- 1994 - Russell Corporation acquires DeSoto Mills of Fort Payne, AL.
- 1995 - Sales reach $1 billion.
- 1997 - Russell is ranked 5th amongst apparel companies by Fortune Magazine in total return to investors over the 10 year period from 1986 to 1996.
- 1998 - John F. Ward is named Chairman, President, CEO of Russell Corporation.
- 1999 - Offices in Atlanta, GA are opened establishing dual headquarters with Alexander City.
- 2000 - Russell Corporation signs agreement to acquire the apparel operations of Haas Outdoors, Inc. and will create the Mossy Oak Apparel Company.
- 2002 - Russell acquires Moving Comfort
- 2003 - Russell acquires Bike Athletic and Spalding
- 2004 - Acquires AAI (American Athletic), Huffy Sports and Brooks Sports
- 2006 - On April 17, Berkshire Hathaway has agreed to purchase 100% of Russell in order to take the company private.
- 2006 - On August 2, Berkshire Hathaway officially purchased 100% of Russell Corporation.[1]
- 2006 - On August 3, Chairman and CEO John F. Ward resigned.
- 2009 - On January 29, the company announced it was closing its Atlanta headquarters
[edit] References
- ^ a b Business Wire (2006-08-02). Acquisition of Russell Corporation Complete. Press release. http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=RML&script=410&layout=-6&item_id=890901. Retrieved on 2006-08-07.
- ^ Russell Corporation's Rights Violations Threaten 1,800 Jobs in Honduras, Workers Rights Consortium, 2008-11-07, http://workersrights.org/RussellRightsViolations.asp, retrieved on 2009-02-13
- ^ Schools Score Points by Standing Up for Workers, Huffinton Post, 2009-02-13, http://www.huffingtonpost.com/david-bonior/schools-score-points-by-s_b_166823.html, retrieved on 2009-02-13
- ^ http://www.usatoday.com/sports/college/2009-02-24-michigan-russell-liscensing_N.htm
- ^ http://www.upi.com/Top_News/2009/02/25/Univ_of_Wash_drops_Russell_logo_license/UPI-19331235592173/
- ^ http://www.tampabay.com/news/education/college/article1007472.ece
- ^ http://www.dailycardinal.com/article/22040
- ^ http://www.ajc.com/services/content/printedition/2009/02/28/techrussell0228.html
- ^ http://www.wbko.com/news/headlines/40305312.html
- ^ "Russell Corporation Timeline". Russell Corporation. http://www.russellcorp.com/html2003/code/history.htm. Retrieved on 2006-08-07.
[edit] External links
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