Clothing retailer Zumiez will close its Everett warehouse and move distribution operations to Corona, Calif.
About 170 employees will lose their jobs in Everett. The company plans to hire between 180 and 200 employees in Corona.
The Zumiez corporate office and online operations — about 180 employees — will stay in Everett.
Zumiez Chief Financial Officer Trevor Lang said the company has no plans to move its home base from Everett, saying Zumiez has “deep roots” in the Pacific Northwest.
“It’s one thing to move a distribution center,” he said. “It’s a little different to move a home office.”
The move will simplify the company’s supply chain, save money and speed up distribution processes, Lang said. He expects relocating the warehouse to save Zumiez at least $1 million annually.
“Since the majority of our vendors are located in California, this move makes sense,” he said.
On Friday, employees at the Everett distribution center were told they’d lose their jobs in 60 days.
That’s when Zumiez will vacate the large warehouse on Merrill Creek Parkway, the smaller of the two buildings the company leases. Zumiez is buying a smaller facility in Corona, according to a company statement.
“Decisions like this are difficult, especially when they impact our valued employees,” Lang said.
A spokeswoman for the state Employment Security Department said Zumiez filed a warn notice with the agency Monday. Employers are required to notify the department of mass layoffs 60 days in advance.
The notice specified that 172 people will lose their jobs, and their final date of employment will be April 23.
Zumiez, which sells action-sports apparel, beat expectations earlier this month when it reported a 1.8 percent year-over-year increase in sales for January. That was an improvement over large earnings drops last year, a sign of dwindling consumer appetites in the face of recession and high unemployment rates.
The company’s stock price dropped 33 cents during trading Monday, ending the day at $14.25
Read Amy Rolph’s small-business blog at www.heraldnet.com/TheStorefront. Contact her at 425-339-3029 or arolph@heraldnet.com.
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