400 New Jobs is Just 0 Jobs at American Merchant Bristol, VA

By Lewis Loflin

I grew up in Norton, Virginia, in Wise County, where I’ve seen countless promises of economic revival fall flat. In 2017, American Merchant, a subsidiary of Hong Kong-based Merchant House International Ltd., promised 405 new jobs at a towel manufacturing plant in Bristol, Virginia, backed by millions in public funds. As of March 2025, nearly eight years later, the reality is stark: only 50 jobs materialized, and the facility appears abandoned, another case of corporate welfare, broken promises, and government secrecy in Southwest Virginia’s economic development.

The Promise: 405 Jobs and Millions in Public Funds

In December 2017, American Merchant announced a $19.9 million investment to convert the former Ball Corp. plant on Old Abingdon Highway into a towel manufacturing facility, claiming it would create 405 jobs. Virginia outbid seven other states to secure the project, with then-Gov. Terry McAuliffe approving a $300,000 grant from the Commonwealth Opportunity Fund and the Virginia Tobacco Region Revitalization Commission providing $590,000 in Tobacco Region Opportunity Funds. The company was also eligible for additional grants from the Virginia Enterprise Zone Program and the Appalachian Regional Commission (ARC), plus training support through the Virginia Jobs Investment Program. A $2.5 million state-of-the-art water treatment system, funded by taxpayers, was built to handle the plant’s projected 300,000 gallons of daily water usage, with 70-80% to be recycled.

The Reality: 50 Jobs and an Empty Facility

By February 2020, American Merchant began producing towels, shipping an initial order to a national retailer. But only 50 people were employed, operating 24 looms, with plans to expand to 48 looms at full capacity. Chairman Robert Burton claimed the plant would eventually employ 400, but as of March 2025, there’s no evidence this has happened. I visited the facility several times during the day and found it empty—no cars in the lot, no visible activity, nothing. I’ve tried contacting them in the past, leaving messages with no response—zilch. A 2023 job fair showed some activity, but no specific hiring numbers were reported beyond the 50 employees from 2020. American Merchant has refused to disclose wages, retailers, or current employment, leaving the public in the dark. The company’s website boasts of producing “the softest, most luxurious bath towels in America,” but it provides no updates on employment or production levels, and my observations suggest the operation has effectively shut down.

Corporate Welfare and Broken Promises

The public investment in American Merchant totals at least $3.39 million—$300,000 from the Commonwealth Opportunity Fund, $590,000 from Tobacco Region Opportunity Funds, and $2.5 million for the water treatment system—plus undisclosed ARC grants and other benefits. For this, Bristol got 50 jobs, not 405, a paltry return on investment. These jobs are unlikely to match the high-paying union positions lost when Ball Corp. closed in 2016, costing 230 workers their livelihoods. Bristol’s government, which often prioritizes low-wage jobs over unionized ones, shrugged off that loss, but the replacement has been a hollow promise. The numbers don’t add up: 50 workers operating 24 looms, with a maximum of 48 looms, can’t realistically scale to 400 jobs without a massive, unreported expansion—something my visits confirm hasn’t happened.

Government Secrecy and Lack of Accountability

This case exemplifies the government secrecy and corporate welfare plaguing Southwest Virginia’s economic development, as I’ve written about before. There’s no public access to American Merchant’s performance metrics, despite millions in taxpayer funds. The Bristol Herald Courier, which reported a single tractor-trailer shipment in 2020, hasn’t followed up since 2023, reflecting its role in filtering facts to “protect” the public, as I’ve noted in my critique of the press. This opacity mirrors other projects, like the Western Front Hotel ($7.8 million in taxpayer funds) and ARC grants in 2015-16, where public money vanishes with little accountability. One can bet the funds are gone, with no enforcement of these agreements, leaving Bristol with minimal economic benefit.

The Cost to Bristol and Southwest Virginia

Bristol, Virginia, continues to struggle, with a poverty rate of 20.1% in 2023 and an unemployment rate of 4.5% in January 2025, above Virginia’s 3.2%. The Tri-Cities region, including Bristol, lost 54,795 jobs from 2009 to 2018, a decline American Merchant’s 50 jobs—if they even still exist—do nothing to offset. In Wise County, where I grew up, the poverty rate is 19.5%, reflecting the region’s broader economic challenges. Projects like American Merchant, hyped with promises of revival, drain public resources while delivering little, perpetuating a cycle of waste and secrecy that benefits corporate interests over the working class.