EveryWare Global has announced it is temporarily halting production at its two US plants, including the Anchor Hocking site in Monaca, in order to preserve cash while the Lancaster, Ohio company negotiates with creditors over a loan default. The company did not disclose the number of hourly and salaried employees who will be idled for 3-4 weeks. It said certain employees are being furloughed without pay. The company blamed the loss on a number of factors including a US $20.7m tax-related impairment charge and severe winter weather, which resulted in higher utility costs. It also cited higher severance expenses and fees paid to consultants who are developing cost saving initiatives. EveryWare said it is expanding the role of Alvarzez & Marsel, a turnaround consultant that is advising the company on cost reduction and efficiency measures. The company said it is in default on a US $250m loan and had until May 30 to convince lenders to either waive the default or agree to new terms. Cash generated by operations and other available credit "are not expected to be sufficient to fund our operations in the near future," the company said in a press release.
