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HanesBrands, Inc. -- the North Carolina-based marketer of innerwear, outerwear and hosiery apparel -- announced Tuesday that it will close its two distribution centers in Schuylkill County -- both located in the greater Tamaqua area.
The local HanesBrands distribution centers will close in the first quarter of 2009.
Company operations will consolidate into existing distribution centers in Rural Hall, N.C., and Martinsville, Va.
Although the closures will result in 155 local job losses, the company said it will provide severance benefits and career training assistance to displaced employees.
"Its a blow to the local economy and certainly a blow to the families of the employees," said Linda Yulanavage, executive director of the Tamaqua Area Chamber of Commerce.
The HanesBrands company and its predecessor at the Hometown facility -- J.E. Morgan Knitting Mills -- have been an employer and partner in Greater Tamaqua for four decades.
"We are very sorry to see HanesBrands go after all the years they've been part of this community. Even through all the transitions, HanesBrands has been a supporter of many projects in the area," Yulanavage said, listing projects including the Tamaqua Main Street program and Depot Square Park at the restored Tamaqua Train Station.
A prepared statement from the company's headquarters in Winston-Salem, N.C., said the distribution center closings in Tamaqua are part of the company's strategy to improve competitiveness by operating fewer and larger distribution centers that are strategically located on the East and West coasts to support the company's product flow from its global supply chain, including increasing production in Asia.
"We regret the need to close these facilities and the effect it will have on our employees and this community," Lee Woodward, vice president of global logistics, said in the statement. "This decision is not a reflection on the quality of our employees in Tamaqua. We will do all we can to help the affected employees, including separation and severance pay and outplacement assistance."
While pleased to learn that assistance will be offered to displaced employees, Yulanavage said the company's departure will have collateral impact on the community.
"I understand that business decisions have to be made. But the loss of HanesBrand will have a spiral effect on the local community," Yulanavage said. "I don't really know what TIDE (Tamaqua Industrial Development Enterprises -- developer of the Tidewood Industrial Park) will do with that big empty building. That's another piece of the effect."
The company will open its largest distribution center -- a new 1.3-million-square-foot facility in Perris, Calif. -- by the end of the year.
When work from the Tamaqua centers moves to the North Carolina facility next year, a portion of the North Carolina work will move to the new California facility.
The 132,000-square-foot Tidewood distribution center at 92 Progress Ave. has been in operation since 1996.
The 590,000-square-foot Hometown facility, located at 143 Mahanoy Ave., has been in operation since 1969.
HanesBrands will seek to sell the properties after the shutdowns are complete.
"There is always somebody looking. Hopefully we will be able to find somebody who it will fit," Yulanavage said.
Worldwide, HanesBrands has approximately 50,000 employees in more than 25 countries.
mialight@standardspeaker.com
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