Closing a Facility? Dig Deep to Avoid Contractual Issues
Legal issues that most often come to mind when a company is closing a facility are terminating a lease or selling the asset(s), but those are just the tip of the iceberg, says Foley & Lardner in a Lexology.com article written by Nicholas Williams, an associate and litigator. He writes that potential problems may arise out of contracts seemingly outside the facility closure’s scope.
“Regardless of the reason, myriad legal considerations accompany a decision to close a facility. For example, we previously addressed the HR considerations. But, in many cases, issues can arise from provisions in unseen depths of contracts,” he writes.
The article offers five tips designed to help manufacturers avoid unwanted contractual surprises in the facility-closing process.