AP News

Company plans layoffs after losing AF contract


FAYETTE, Ala. (AP) — An apparel company that's losing a military contract to the federal prison system says it plans to lay off 50 workers in Alabama and Mississippi rather than idling two plants.

American Power Source Inc. says the layoffs in Fayette, Ala., and Columbus, Miss., are due to the government's decision to shift an Air Force contract to a government entity that uses prisoners to make items.

The two plants employ about 260 people, and the company filed paperwork indicating it intended to close the factories.

But a statement released Tuesday says American Power Source plans to keep the plants open and is seeking new work to keep other employees going.

American Power Source has made physical fitness uniforms for the Air Force. It says it won the contract in 2009.


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