Collective Brands to consolidate DCs

TOPEKA, Kan. Collective Brands today announced plans to consolidate its five primary North American distribution centers into three U.S. centers. To meet the capacity and technology needs of the expanding Robeez brand, the company intends to shift the distribution of Robeez product from its Burnaby BC distribution center to its Huntington Ind. distribution center, and ultimately to its new Eastern Distribution Center in Brookville, Ohio.

The company intends to close its Burnaby BC distribution center in September 2008.  The 600,000-square-foot Eastern Distribution Center is currently under construction and due to open later this year. In spring 2009, the company intends to close its Huntington, Ind. distribution center.

"This move enhances the operational efficiency of merchandise distribution across the company to benefit our wholesale and retail customers," said Matt Rubel, ceo of Collective Brands. "This business decision allows us to best leverage our geographically aligned distribution centers for maximum cost-efficiency and effectiveness, ensuring faster distribution of all Collective Brands products to customers."

As a result of these moves, Collective Brands anticipates that by late 2009 it will operate three U.S. distribution centers serving North American customers: the Western Distribution Center in Redlands, Calif.; the Louisville Distribution Center in the southeastern region; and the Eastern Distribution Center in Brookville.

Approximately 180 associates are affected: about 40 associates in Burnaby and 140 in Huntington. The company also expects to create about 130 new jobs -- 100 at its new Eastern Distribution Center in Brookville and 30 jobs at its Louisville Distribution Center.