Portland, Oregon is reeling from the sudden closure of DENNIS Uniform, a long-standing school uniform company based in the city. The company, a significant employer in the region, has abruptly ceased operations at all of its U.S. sites, resulting in the layoff of over 100 workers in Portland alone. This closure marks the end of an era for a business that has been a fixture in the school uniform market for decades, leaving many to question the future of school uniform supply and local manufacturing.
Founded in downtown Portland in 1920, DENNIS Uniform initially specialized in nurse uniforms before transitioning into the school uniform sector in 1947. Alongside this shift, the company opened its first retail store, solidifying its presence in the burgeoning school uniform market. For generations, Dennis Uniforms Portland became synonymous with quality and reliability for schools and families across the nation. The company even gained a touch of Hollywood fame when it provided the plaid school uniform costumes for the popular movie “The Princess Diaries” in 2001, showcasing their design and manufacturing capabilities.
The announcement of the closure came in a notification to Oregon state officials dated October 19th. DENNIS Uniform’s interim CEO, Lawrence Perkins, cited the company’s failure to secure necessary funding as the primary reason for the shutdown of all approximately 40 U.S. locations. In accordance with the Worker Adjustment and Retraining Notification (WARN) Act, which mandates companies to notify the state of significant layoffs, DENNIS Uniform invoked the “faltering company” exception. This exception permits a reduced notice period, typically less than 60 days, when a company is actively pursuing financial solutions to avert layoffs but ultimately fails to secure the needed capital. Perkins stated in the WARN notice that despite “material efforts” to obtain additional funding, the company was unsuccessful, making the layoffs and closures “unavoidable.”
The news of DENNIS Uniforms Portland closing its doors also highlights the broader challenges faced by U.S. clothing manufacturers. For much of DENNIS’s early history, a significant portion of clothing purchased in America was produced domestically. However, shifts in trade policies and the lure of lower labor costs overseas have led to a substantial migration of clothing manufacturing outside of the United States. This trend has intensified competition for local clothing producers, making it increasingly difficult for businesses like DENNIS Uniforms Portland to thrive in recent years.
Adding another layer to the story is the involvement of private equity firms. After being owned by the founding Portland family for generations, DENNIS Uniform saw a majority stake acquisition by Spanos Barber Jesse & Co. in 2017. Further investment came in January from Origami Capital. Interestingly, the same month as Origami Capital’s investment, DENNIS Uniform opened a large distribution center in Fort Worth, Texas. While representatives from DENNIS Uniform and these private equity firms have not responded to requests for comment, the closure aligns with a pattern of financial difficulties experienced by other Oregon companies backed by private equity.
Angela Jackson, managing director of Portland Seed Fund and an expert in private equity, offers insights into the typical playbook of private equity firms when they invest in established companies. Jackson notes that while private equity can bring capital and expertise to improve efficiency and profitability, cost-saving measures often involve staff reductions. For long-standing, smaller operating companies, seeking private equity investment can appear to be the best available option, but it can unfortunately lead to negative local consequences such as job losses and, in this case, complete closure.
The sudden shutdown of DENNIS Uniforms Portland represents not just the loss of over 100 jobs in Portland, but also the disappearance of a well-known name in the school uniform industry. As schools and families scramble to find alternative suppliers, the closure raises concerns about the stability of the school uniform market and the ongoing pressures on local businesses in the face of global economic forces and evolving investment strategies.
