Hanesbrands expects to take restructuring and related charges for the Weston distribution center closure of approximately $8 million, including severance, lease exit and asset write-off costs. Operations at the 267,000-square-foot distribution center are expected to cease by March 2007.
The company will move distribution of men's underwear and sleepwear products handled in Weston to the company's existing distribution centers in Rancho Cucamonga, California, near Los Angeles, and Rural Hall, near Winston-Salem.
The Rancho Cucamonga distribution center, the company's first on the West Coast, supports the company's expanding supply chain in Asia and reduces lead times and improves speed to market.
The company's 446,000-square-foot Almondridge Road distribution center in Rural Hall will be upgraded in order to assume distribution operations that are performed at two Winston-Salem centers, as well as the added product from the Weston center.
Operations at the 90,000-square-foot Empire Drive distribution center and the 240,000-square-foot West Point Boulevard distribution center, both in Winston-Salem, will be relocated by April 2007 to the Almondridge Road distribution center, approximately 20 miles north of the Winston-Salem centers.
The company's approximately 140 employees at the Empire Drive and West Point centers will be transferred to the Almondridge Road center.
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