Sparton Corp. Chief executive officer, Cary Wood, said in a news release that the firm was also freezing its defined benefit plan and that both actions would be effective April 1, 2009.
“We have taken these actions as necessary
additional steps in the company’s return to
profitability,” said Wood, in the announcement. “As many
companies are doing during these difficult times, we are
reviewing all avenues to reduce costs and stabilize our
financial resources. We, therefore, made this decision
after a significant amount of discussion. Our intention
is to resume participation as appropriate as soon as it
is financially prudent to do so.”
According to news reports, Sparton cut its workforce earlier this month by 6%. The company received word from the New York Stock Exchange that it could remain on the exchange even though its market capitalization was below $75 million over a 30-day period.