Unpredictable Letter! Ohio Distribution Center Hit With Dozens of Layoffs Due to Express Bankruptcy

Unpredictable Letter! Ohio Distribution Center Hit With Dozens of Layoffs Due to Express Bankruptcy


A number of months after submitting for Chapter 11, Express is still cutting jobs.

A few days after the women’s wear brand was saved from bankruptcy by Phoenix Retail’s acquisition, Bath and Body Works Logistics Services, LLC—which offers shipping services for Express—noticed in a WARN notice that it would be permanently cutting operations at its Columbus, Ohio, DC.

In addition to announcing its intention to shut down 100 locations, Express filed for Chapter 11 bankruptcy on April 22, 2024. “Ever since that time, Express’s volume has stayed low and unpredictable,” the letter from June 18 stated. In light of this, “the Company needs to permanently reduce its operations,” the statement continued. As of June 22nd, 85 employees had themselves laid off.

Lia Lincoln-Smith, VP of human relations at Bath & Body Works and a signatory to the letter, stated that affected staff would be given the chance to apply for roles within the firm that are transferred. She added that severance compensation would be paid to those who choose not to seek future employment with the group.

The arrangement that allowed Express to escape Chapter 11 on June 24 was a $174 million one. Phoenix Retail, a partnership between WHP Global, a brand acquisition and management company, and Simon Property Group and Brookfield Properties, owners of shopping centers, has announced its intention to keep 750 stores open and 7,000 jobs during the closure of dozens of locations nationwide.


Stop! Ohio Suffers Job Losses as Clothing Retailer Goes Bankrupt

Bob’s Stores to Conclude Operations; Eastern Mountain Sports’ Stability Uncertain

Limited success has forced many stores to reduce their operational footprint, not just Express.

In order to cut $100 million from its fiscal budget for 2024, Macy’s revealed earlier this spring that it would be consolidating its distribution and logistics network. The legacy department store company said that 150 stores would be shuttered over the next three years, in addition to eliminating an undetermined number of our 25 fulfillment sites.

Careismatic Brands, licensee of Cherokee medical gear and Dickies scrubs and labcoats, permanently lay off 404 employees in May and closed two distribution centers in Dallas, Texas, continuing consolidation measures that started in 2023.

Fortunately, logistics in the clothing industry are not completely in the dumps. Similar to Ross, which announced in May that it would invest $450 million in a new North Carolina DC, other national retailers are pouring more money into infrastructure development. The 1.7 million square foot warehouse will generate 852 new jobs, according to West Virginia Governor Roy Cooper.

Leave a Reply

Your email address will not be published. Required fields are marked *