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Hudson Fabrics looking to sell facility
By Jamie Larson
HUDSON — To try and save his company and keep his roughly 16 workers employed in some fashion, the owner of Hudson Fabrics LLC, Mark Shur, has asked the Hudson Industrial Development Agency to allow him to pay off the bonds he owes ahead of schedule. This will make it easier for him to either sell off or lease the factory to a new buyer and keep him out of further financial trouble.
The IDA told Shur at a public meeting at City Hall that it understands the difficulty the current economy has put on his business and thanked him for working hard to provide for his employees. The IDA resolved to wave any penalties Schur could have incurred for breaking his contract early, as long as he can find a buyer for the factory within 60 days. Shur indicated that this would not be a problem and that there is an interested party with whom he is close to finalizing a deal.
In a written statement provided to the board, then redacted for publication, Shur presented an emotionally raw and detailed picture of a business in trouble. He says he has arranged to get out from under his bonds and will pay all accrued interest. “I am using my own, and my family’s money to accomplish this,” Shur says. “I am doing this in an effort to save my company and in an attempt to recoup as great a portion of my investment as I can. In the past six months sales at Hudson Fabrics, while never strong, have fallen off a cliff.”
Shur says this drastic decline in sales is due to the industries they supply with fabrics, like the auto industry, being in dire straits themselves. He added that while he would like to think that sales at the factory, which has been operating one week-on, one week-off since the beginning of March, will come back, he is not optimistic that will be the case.
While paying off his bonds will help him in the short term, Shur said it will also create long-term benefits for the city. If he frees him of his responsibilities to the IDA for helping him start his business initially, he will gain total control over the factory, allowing him to sell it. This action will also immediately put the property back on the full tax rolls. So whatever business moves in will create more revenue for the city.
The owner told the IDA he is aware that by paying off the bonds he leaves himself open to penalties, like the returning of public benefits, but he hopes the IDA would make an exception, which, inevitably, it did.
“Everyone on the board thought this time is difficult enough,” Hudson Mayor and IDA member Richard Scalera said. “We don’t need to punish a struggling businessman who has tried to help his workers as best he can.”
Hudson Fabrics was a part of an IDA pilot program that gave the company a tax break. Over the next three years the tax on the property would increase up to the standard amount. While still in the pilot plan, Shur was beholden to the IDA. Selling off his bonds freed him of that oversight and obligation.
Shur is hopeful that a lease deal or outright sale of the factory will be finalized in April.
The IDA told Shur at a public meeting at City Hall that it understands the difficulty the current economy has put on his business and thanked him for working hard to provide for his employees. The IDA resolved to wave any penalties Schur could have incurred for breaking his contract early, as long as he can find a buyer for the factory within 60 days. Shur indicated that this would not be a problem and that there is an interested party with whom he is close to finalizing a deal.
In a written statement provided to the board, then redacted for publication, Shur presented an emotionally raw and detailed picture of a business in trouble. He says he has arranged to get out from under his bonds and will pay all accrued interest. “I am using my own, and my family’s money to accomplish this,” Shur says. “I am doing this in an effort to save my company and in an attempt to recoup as great a portion of my investment as I can. In the past six months sales at Hudson Fabrics, while never strong, have fallen off a cliff.”
Shur says this drastic decline in sales is due to the industries they supply with fabrics, like the auto industry, being in dire straits themselves. He added that while he would like to think that sales at the factory, which has been operating one week-on, one week-off since the beginning of March, will come back, he is not optimistic that will be the case.
While paying off his bonds will help him in the short term, Shur said it will also create long-term benefits for the city. If he frees him of his responsibilities to the IDA for helping him start his business initially, he will gain total control over the factory, allowing him to sell it. This action will also immediately put the property back on the full tax rolls. So whatever business moves in will create more revenue for the city.
The owner told the IDA he is aware that by paying off the bonds he leaves himself open to penalties, like the returning of public benefits, but he hopes the IDA would make an exception, which, inevitably, it did.
“Everyone on the board thought this time is difficult enough,” Hudson Mayor and IDA member Richard Scalera said. “We don’t need to punish a struggling businessman who has tried to help his workers as best he can.”
Hudson Fabrics was a part of an IDA pilot program that gave the company a tax break. Over the next three years the tax on the property would increase up to the standard amount. While still in the pilot plan, Shur was beholden to the IDA. Selling off his bonds freed him of that oversight and obligation.
Shur is hopeful that a lease deal or outright sale of the factory will be finalized in April.
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