Samsonite to close Denver HQ, move some operations to Mass.

DENVER --Venerable luggage maker Samsonite Corp. announced Wednesday it will shut down its Denver headquarters by the end of next year, a move that will affect 265 employees and end the company's nearly century-long presence in Colorado.

The company said closing its headquarters was part of an ongoing consolidation that will move activities here to its office in Mansfield, Mass., and to an unidentified distribution facility in the Southeast.

Samsonite closed its Denver manufacturing plant in 2001 and moved those operations overseas. Last year, it sold its 100-acre campus in Denver to a California developer, Panattoni Development Co., for $14.2 million, raising questions about its future in Denver.

The company was founded in Denver as Shwayder Trunk Manufacturing Co. in 1910.

"This decision has been a particularly difficult one to make," said Marcello Bottoli, Samsonite president and chief executive.

Samsonite said it was providing extended notice of the closure to employees. Company spokesman Doug Donsky said in an e-mail that "certain employees" will be given the opportunity to stay with Samsonite.

One of the world's most well-known luggage makers, Samsonite was about three weeks away from a major refinancing deal when terrorists struck New York and the nation's capital in 2001. All of Samsonite's lenders pulled back.

What followed was a nearly two-year scramble to protect the company best known for its advertising campaign featuring a luggage-beating gorilla. Samsonite executives knew they would be hurt by a devastating slump in the travel industry and a desperate need for cash.

At one point, Samsonite was delisted from the Nasdaq Stock Market and its stock was trading below $1 on the Over the Counter Bulletin Board. It also faced shareholder lawsuits and posted four straight years of net losses.

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On the Net: http://www.samsonite.com