The union representing many New Era Cap employees has agreed to severance benefits for some 200 soon-to-be out of work people at its shuttering Derby manufacturing plant, clearing the way for the facility's closure by the end of March.

The hat and sports apparel maker said in a statement that the plant closing agreement is the result of negotiations with the Communications Workers of America.

The plant shutdown was announced in November, when New Era announced it was trying to align its business model with global competitors by moving away from owning and operating manufacturing plants.

The company was founded in 1920 and is headquartered is in downtown Buffalo, where the company stated normal operations would continue. New Era Cap currently makes hats for the NBA, NFL and MLB.