Vera Bradley Inc. has announced plans to close it’s factory in New Haven, affecting approximately 250 workers. The handbag, luggage and accessories maker announced Tuesday, March 10, that it will close the factory May 9 unless business conditions require swifter action.

CEO Robert Wallstrom stated in a news release that part of the reason for closing the plant is due to the company’s US production costs being nearly double those of overseas plants. He also said that severance packages would be provided to workers who are unable to transfer to other positions within the company.

The company will still employ roughly 2,300 US workers, including 630 in the Fort Wayne area. Company co-founder Patricia Miller was the Indiana secretary of commerce under former Governor Mitch Daniels.

Source: WTHR