Dorel compliance on state loan agreement being checked
Last Wednesday was the deadline for determining whether Cannondale Sports Unlimited’s parent company, Dorel Industries, complied with the specifications of a $3-million state loan it received in 2013.
Originally, the company was to retain the 143 jobs it had at the time as well as create 75 more, for a total of 218 jobs, for 12 months under the terms of the 10-year loan at 2 percent interest.
The company received the loan under former Gov. Dannel P. Malloy’s administration, to entice it to remain in Connecticut when it announced plans to move out of its Bethel facility. The company then established headquarters in South Wilton, at the iPark facility on Danbury Road. Cannondale, a manufacturer of high-end bicycles and other gear, got its start decades ago in Wilton.
It was supposed to show it had met the terms of the agreement by Aug. 1, 2017, but on Dec. 5 of that year the state Department of Economic and Community Development reported an amendment to the loan agreement had been signed.
Under the amendment, the company was to retain 140 full-time positions and create 41 part-time positions. It was to maintain an average of 181 jobs for a year prior to Aug. 14, 2019.
If it has done so, it can get $1 million of the loan forgiven. The company now has 60 days to conduct a job audit and submit it to the DECD.
Dorel laid off 50 workers in its leisure division in June 2013.