Label
Libbey Glass MJRTC
Department of Economic Development
Brandon Sehlhorst (x1692) / Steven Powell (x1044)
Revised
Title
Authorizing the Mayor to enter into a 10-year, 10% Municipal Jobs Retention Tax Credit ("MJRTC") Agreement with Libbey Glass LLC; and declaring an emergency.
Body
SUMMARY & BACKGROUND:
Libbey Glass LLC ("Libbey") is one of the largest makers of glass tableware in the world. The company designs and markets an extensive line of high-quality glass tableware, ceramic dinnerware and metal flatware for sale primarily in the foodservice, retail and business-to-business channels of distribution.
The company has a long history in Toledo. In 1888, Edward Drummond Libbey relocated his glass company to Toledo and constructed a manufacturing plant on Ash Street in North Toledo. The Ash Street plant has been manufacturing glass products for over 134 years and represents one of the longest operating plants in the country. In addition to the Ash Street plant, Libbey's corporate headquarters is located in Downtown Toledo and the company operates an outlet store at the Erie Street Market. Libbey remains one of the City's largest employers.
In June 2020, Libbey filed for Chapter 11 bankruptcy for the first time in its 202-year history. The company cited the unprecedented impact of the coronavirus pandemic on demand for its products. As part of the Chapter 11 bankruptcy process, Libbey was required to submit a proposal to its creditors and the court that financially restructured the company by reducing costs and right sizing manufacturing capacity to align with lower market demand. The company was faced with the difficult decision to close one of its North American manufacturing plants in either Toledo, Ohio or Shreveport, Louisiana. The closure of one plant would allow the company to transfer capacity to the other facility and improve cash performance in the near term.
Libbey's decision to close the Toledo plant would impact 844 ...
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