Layoffs threatened at Interlake

PONTIAC -- About 260 employees of a central Illinois storage-rack factory are at risk of losing their jobs, in what would be the latest blow to the community of Pontiac.

That's according to executives at Pontiac's Interlake Material Handling plant.

A company letter obtained by The (Bloomington) Pantagraph says layoffs could begin in mid-February if Interlake can't secure fresh capital or find a buyer. The plant would close for good soon after that. The letter is from CEO Daniel Wilson to Board Chairman Bill Fairfield.

A union leader, Ralph Timan, calls the news "devastating."

Interlake is Pontiac's sixth largest employer, and Mayor Scott McCoy holds out hope the plant will find a way to stay open.

Pontiac could also lose its second largest employer, Pontiac Correctional Center, which Gov. Rod Blagojevich wants to close.