LANCASTER, Texas — In a letter to the mayor of Lancaster, DLH Solutions said it is closing its plant in the city due to the loss of a contract with the Department of Veterans Affairs.

The closure will result in the layoff, at least temporarily, of 298 employees. DLH added in the letter that the VA's new contractor may hire back most, if not all, of the employees.

The employees' termination will take effect on Nov. 29, the letter states. This comes after DLH Solutions received a notice on Monday from the VA. The VA is expected to continue operations at the site with a new contractor without interruption.

DLH Solutions added in the letter that, because of the unexpected timing of the contract award decision, it was unable to provide 60 days' advance notice.

All affected employees have be

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