The adidas Group will consolidate the adidas brands apparel distribution center in Hebron, Ky., its footwear distribution center in Spartanburg, S.C., and the Reebok brands apparel distribution center in Memphis, Tenn., and its footwear distribution centers in Stoughton and Norwood, Mass., into new facilities in Spartanburg, S.C., by fall 2009.
The decision to develop an integrated distribution network is intended to strengthen the Groups competitive position, as well as contribute to the synergies created by the integration of adidas and Reebok.
The facilities in Memphis and Hebron are expected to remain in operation until the fall of 2008. The facilities in Stoughton, Norwood and Spartanburg are expected to remain in operation until the fall of 2009.
U.S. distribution centers that are not affected by the consolidation include: the companys Sports Licensed Division facilities in Mattapoisett, Mass., Indianapolis, Ind., and Cedar Rapids, Iowa; the Rockport Company facility in Lancaster, Mass., and the Taylor Made-adidas Golf facility in Carlsbad, Calif.
“Maintaining separate distribution systems for adidas and Reebok apparel and footwear in different parts of the United States is not an efficient way of effectively managing this critical aspect of our business,” said Lars Soerensen, Senior Vice President, Global Logistics for the adidas Group.
The consolidation will affect approximately 375 adidas and Reebok brand employees at apparel distribution facilities in Memphis and Hebron and at footwear distribution facilities in Stoughton and Norwood. adidas employees currently in Spartanburg will move to the new site a few miles away.
“One of our top priorities is to ensure that all of the affected employees are treated fairly,” said Liam Devoy, Head of Global Warehousing for the adidas Group. “In addition to providing ample advance notice to the employees, we are offering severance packages and job transition assistance. Opportunities in the new facilties also will be available.”
Construction on the state-of-the-art facilities in Spartanburg will begin shortly. The company plans to build a footwear facility measuring approximately 1.1 million square feet and an apparel facility measuring approximately 800,000 square feet.
