Dixon Direct lays off 140 people, will bring back only 95, letter says

DIXON – Dixon Direct has temporarily ceased operation due to the COVID-19 pandemic.

The company, a part of Arcade Beauty, closed its facility at 1226 W. Seventh St. and laid off 140 employees, informing them in a letter dated March 26.

In addition, the letter obtained by Sauk Valley Media stated that of the 140 people employed there as of March 21, only 95 will be brought back once the pandemic has passed, and if business conditions warrant.

An email seeking comment went unanswered Monday, and a phone call to the facility reached only security staff.

Dixon Direct produces ScentStrip for Arcade Beauty, a fragrance-sampling technology for the cosmetic industry. It also offers printing of direct mail to affiliated companies.

The March 26 letter to staff said that the company wished it could have given employees more warning, but could not because of how quickly the pandemic grew. The letter also said employees lost their health insurance, effective Tuesday, but could apply for COBRA. They also were encouraged to file for unemployment.

An initial letter, dated March 21, said that the facility needed to temporarily lay off what it termed noncritical employees, expecting the shutdown to last 17 days. That was the day Gov. J.B. Pritzker issued a stay-at-home order, expecting that order to expire April 7, 17 days later.

On Tuesday, Pritzker extended that order through April 30.