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  • Sean Kernan

    Ohio Distribution Center Hit With Layoffs

    27 days ago
    User-posted content
    https://img.particlenews.com/image.php?url=3luIkL_0uQESdVG00
    Photo byAndrew Harnik

    Express is continuing to downsize operations months after filing for Chapter 11 bankruptcy.

    Bath and Body Works Logistics Services, LLC, which provides shipping services for Express, recently filed a Worker Adjustment and Retraining Notification Act notice. The announcement said they'dbe permanently reducing operations at its Columbus, Ohio, distribution center.

    This announcement came days after the women’s wear brand was acquired by Phoenix Retail—saving it from bankruptcy.

    On April 22, 2024, Express filed for Chapter 11 bankruptcy and announced plans to close 100 stores.

    Despite this acquisition, Express's volume remained low and unpredictable. Per a letter dated June 18, the company stated, "The Company needs to permanently reduce its operations," leading to the layoff of 85 workers on June 22.

    Lia Lincoln-Smith, VP of human relations for Bath and Body Works, said impacted employees could apply for transfers to other roles within the company.

    Those opting not to pursue it would receive severance packages.

    Express finalized a $174-million deal to exit Chapter 11 on June 24.

    Their new owner, Phoenix Retail, is a joint venture between WHP Global, Simon Property Group, and Brookfield Properties, plans to retain 7,000 jobs and 450 stores while winding down operations in several locations across the country.

    Express is not alone in shrinking its operational footprint due to poor performance. Earlier this spring, Macy’s announced it planned to consolidate its logistics and distribution network, aiming to cut $100 million from its 2024 fiscal budget.

    Macy’s will close an unspecified number of its 25 fulfillment centers and 150 retail stores over the next three years.

    What do you think? Who is to blame for these problems? Leave your comment below.

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