US: Gap to close two distribution centres in Hebron
Specialty clothing retailer Gap Inc is to close two distribution centres in Hebron, Kentucky in a move aimed at driving efficiency, but will also put 350 jobs at risk.
In a statement issued to just-style yesterday (17 January), the company said: "Gap is making adjustments to its distribution model for its brands to drive efficiency, speed to market and product availability for customers.
"As a result, we are announcing that we have made the very difficult decision to close two product distribution centres in Hebron, Kentucky, effective 30 June. The two other Gap facilities on the Hebron campus - the National Recovery Center and Dolwick Logistics Business Center, are not affected and will continue to operate as they do today."
The San Francisco-based retailer said it also continues to operate distribution centres across the US - in Fresno, California, Gallatin, Tennessee, Fishkill and New York.
"The decision to make this shift was difficult because it will result in the loss of jobs at these two facilities in Northern Kentucky. Our plan is to close the distribution centres in a phased approach," the statement said.
"Consistent with the company's values and history of treating employees fairly, Gap will work closely with our employees over the coming months to make this transition as smooth as possible, and to help as many impacted employees as possible find other employment opportunities."
Workers will leave the company in a phased approach over the next three to five months, starting mid-April through to late summer, a spokesperson for Gap told just-style.
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