CHAMPLAIN -- Only 16 people are still employed at the Main Knitting Inc. warehouse here, which is closing because of a loss of clients and the poor exchange rate.

"The whole thing (company) is folding," said Paul Courville, warehouse manager of Main Knitting in the Industrial Park in Champlain. "Every week, we're letting people go."

Courville said the closure was decided on at the beginning of the year after the private-brand undergarment manufacturer, which is based in Montreal, lost two of its biggest clients.

"That was the knife in the stomach," he said.

Main Knitting Inc. has a warehouse in Champlain and one in Ville St. Pierre, Quebec.

The poor U.S.-Canadian exchange rate also contributed to the shutdown.

"Two or three years ago, the exchange rate was at 50 percent," Courville explained. "Now that profit is not coming in (to the U.S. warehouse). And, customers are buying less."

Courville said the entire retail industry has been affected by the weakened economy.

The Champlain warehouse started with seven employees in 2003 and grew to employ more than 100 individuals, he said.

"At the peak period, we had 75 regular employees."

On Wednesday, only 16 employees were left.

"I've had sleepless nights," Courville said. "I laid five (people) off today. Some of them took it really bad, even though they knew it was coming.

"It's going to hurt Champlain."

Village of Champlain Mayor Jeffrey Moore said the news was "very disappointing."

"But I'm optimistic someone else will come in," he said.