By Scott Moyers

Special to Business Today

After 56 years of doing business in Cape Girardeau, the Jim Wilson Co. has begun incrementally laying off its 65 workers with plans to close its doors for good by the end of the year.

But there's even more bad news for workers at the employee-owned company: In addition to losing their jobs, the workers will lose millions in retirement money from their stock ownership plan.

Company president Brad Wilson said a three-year "lack of profitability" - fueled by a poor economy - has caused serious financial troubles for the wholesale distributor of automotive, light- and heavy-duty truck parts, tires and shop equipment.

The poor economy caused the agriculture and trucking industry to struggle, too, and both sectors are primary customer sources for the Jim Wilson Co., which first opened for business in 1947.

"The customer base has just eroded," Wilson said. "No question the economy in the rural areas has been in very rough shape. It isn't a recent event, but it's definitely been the lead-up."

The company will be closed through a liquidation process, said Wilson, who has been company president since 1995. When the inventory is gone, the business will close, he said. Wilson said some details, such as at what rate employees will be laid off, haven't been worked out.

Wilson also confirmed that company employees - made up of sales, clerical, warehouse and delivery staff - will lose money from their employee stock ownership plan packages. ESOP is an employee benefit that makes the employees of a company partial owners. He equated it to a profit-sharing plan.

Wilson said he didn't know how much money the employees would lose.

But he wanted it made clear this is not money that the employees paid in.

"They didn't pay anything," he said. "The company contributed it on their behalf. Any other investment, such as 401(k), that they are still fully vested in - those dollars will be coming to them."

One former employee is Terry Hill, who worked at the Wilson Co. for 20 years until he left in 2001. Hill was a sales manager who served on the board of directors for nine years.

"I left when I saw the writing on the wall," Hill said.

Hill said when he left to start his own company, there was between $2.5 million to $3 million in the trust from the stock ownership plan. Hill has yet to receive the $68,000 owed him from his 20 years there.

Since the news was given to workers, Hill said he has gotten calls from upset employees wanting to know where the money went.

"They think the money was being set aside for when they retire," Hill said. "But that's not how it works. It was reinvested in the company. What my $68,000 consisted of was the desk I used, the trucks, the receivables, all of it."

The employees that Hill has talked to are angry, he said. Hill himself has called the Department of Labor to complain. Some of the employees want to get together and hire a lawyer.

One other business will be affected. Express Tire & Auto Service Center at 2000 Independence, which is a retail outlet that offers tires, tune-ups and other automotive services, is also owned by the Jim Wilson Co.

"That is owned by this company and will be liquidated by this company," Wilson said. "Who ultimately ends up with the business remains to be seen." Wilson, who has served as president since 1995, said he had no plans to be involved with Express Tire in the future.

Wilson said his focus right now is on his employees. He's contacted the state's Department of Economic Development, which has activated its Rapid Response Team to assist the workers in finding new jobs.

The team held meetings with workers to explain the free job-searching services that are available through the Missouri Career Center as well as explain other services.

"My first interest is in taking care of the people," Wilson said. "It has been a very painful decision, not only personally, but because of all the people in the company who have been very dedicated to this company."

Wilson said they spent a good deal of time trying to make a turn-around.

"We tried to be more cost-efficient, we tried everything," he said. "But you have to have a customer base to be cost-efficient."

Scott Moyers is business editor at the Southeast Missourian.