An early success story in recent revitalizing at Tech City in Kingston has turned into a surprising closure of a business, and a loss of at least 130 jobs.
Partsearch Technologies, a company at Tech City, notified the state Department of Labor on Nov. 3 that the company may permanently lay off at least 130 workers at its Ulster and New York City locations, according to a department spokesman.
“Due to the unforeseeable loss of its largest client, Best Buy, the company may have to institute a permanent mass layoff at its New York City and (town of) Ulster locations,” DOL spokesman Joe Morrissey said Nov. 3.
“If the company is unable to resolve its issue with Best Buy, layoffs would be permanent,” reads the notification, which is required under the WARN act, the Workers Adjustment and Retraining Notification Act for job losses that affect more than 50 workers.
For unexplained reasons, Best Buy ended its relationship with Partsearch on Oct. 29. The company drew most of its revenue from the retailer, with which it has special business arrangements.
The company announced in 2001 an “alliance” with Best Buy to develop a master parts catalog for the appliance industry “in an effort to simplify the industry”™s service processes.” Apparently, the dissolution of that alliance is at the root of the company”™s sudden disappearance.
The Partsearch operation at TechCity in Ulster is estimated to employ at least 130 people. It is uncertain how many employees will lose their jobs in the New York City offices.
The web site for Partsearch is apparently no longer functioning and company officials cannot be reached for comment or explanation
Partsearch Technologies came to a 25,000-square-foot facility at the former IBM campus in 2003 and left so abruptly that officials at Tech City had no advance warning. “Their parking lot is empty,” said Tech City spokesman Paul Rakov after the state DOL announcement. “That”™s all we know right now,” he said.
Lance Matteson, president of the Ulster County Development Corp., said a new management team at Partsearch had been informed that the county stood ready to help “to get those jobs back or to keep them.”
Matteson said he could not talk about specific efforts the UCDC was making. “We”™re still engaged and doing everything we can to explore all options for retaining those jobs. I don”™t want to build false hopes,” he said.
He couldn”™t say if the company was even still in business.
Paula Baldwin, spokeswoman for Best Buy, issued a statement by e-mail, “I can confirm that Best Buy no longer works with Partsearch, but have no further comment on the circumstances.”
