WFCN —
A clothes business in Ohio is implementing brutal layoffs following its announcement that it would be closing over 100 outlets.
In response to Express’s struggles with declining sales since its bankruptcy filing, one of its logistics partners has reduced the amount of delivery services it offers to the company.
As per a notice issued under the Worker Adjustment and Retraining Notification Act on June 18, Bath & Body Works permanently terminated operations at a distribution facility in Columbus, Ohio, last month. This facility had previously provided logistics and shipping services to Express.
An email from a representative of Bath & Body Works to sister publication Supply Chain Dive explained the change by saying it was due to “a continued decline in the volume of the logistics services provided to Express.”
Multiple companies have sought Chapter 11 bankruptcy protection this year; Express is just one of many. Rue21 is another clothing firm that has joined the ranks.
Express stated in its bankruptcy plan that it will be closing about 100 outlets due to supply chain issues caused by fall in demand.
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An official from Bath & Body Works confirmed that 75 positions will be cut at the Columbus location as a result of the layoffs.
Both severance and opportunities to move to other positions within the distribution center network were extended to the affected employees.
According to a securities filing, Bath & Body Works utilized six regional distribution centers in North America that were run by third parties as of the end of fiscal 2023. Bath & Body Works also owned five shipping, distribution, and office facilities in the Columbus region.
Filing for bankruptcy does not always spell doom for a retailer.
In 2020, department store behemoth J.C. Penney emerged from bankruptcy and has since strengthened its supply chain capacities.
An investment of over $1 billion was announced last year by the corporation with the aim of enhancing supply chain operations by fiscal 2025.
It reportedly spent $40 million earlier this year to renovate its distribution center in Reno, Nevada, according to RetailDive.
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