January 12, 2011
Borders lays off 310, closes one of three distribution centers
by Dennis Johnson
In its intensifying effort to show creditors it means business, or at least to stay in business, Borders announced yesterday that it’s firing the 310 people who work at its distribution center in LaVergne, Tennessee, and closing operations there in July.
According to a report from Nashville’s WKRN, the company released a statement saying it was all part of its “long-term plan to enhance the efficiency of its distribution network and reduce operating expenses.”
The statement said the company had realized it had “excess capacity in its distribution network and requires only two distribution centers to process and ship inventory to stores.”
That means that the company no longer has a distribution center fulfilling orders in the middle of the country, and will now be relying on its two remaining distribution centers in Carlisle, Pennsylvania and Mira Loma, California.
Dennis Johnson is the founder of MobyLives, and the co-founder and co-publisher of Melville House. Follow him on Twitter at @mobylives