Fruit of the Loom to Layoff 119 Workers as S.C. Distribution Center Closes
Fruit of the Loom is trimming its team, laying off more than 100 workers at its South Carolina distribution center.
According to a WARN notice filed this week, the American apparel and underwear maker is closing the location in Summerville permanently, resulting in the termination of 119 employees by July 1.
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The Kentucky-based company, which owns Spalding, Vanity Fair and Russell Athletic, is required to report the layoffs under the Worker Adjustment and Retraining Notification Act, which covers entities with more than 100 employees.
“As a global Company operating in a highly competitive marketplace, Fruit of the Loom Inc., is constantly analyzing its business to ensure we remain as competitive as possible,” the company said in a statement. “After an extensive review of our distribution network, the decision was made to close the distribution center…in support of a consolidation strategy.”
Fruit of the Loom skated bankruptcy when it was acquired by Warren Buffet’s Berkshire Hathaway in 2002, becoming a wholly owned subsidiary of the multinational holding company. The 172-year-old firm has sought to up its sustainability profile and entice an emerging contingent of conscious consumers by incorporating recycled cotton from Recover and cellulosic fibers from Lenzing’s Ecovero into its portfolio in recent seasons.
Layoffs have become a near-weekly occurrence across the logistics sector, with transportation and warehousing shedding 23,000 jobs in December alone. Sport apparel manufacturer and retailer Fanatics this month announced it would terminate 218 employees as it closes its Jacksonville, Fla. distribution center, while contract logistics provider GXO said it would shutter its Memphis, Tenn. facility by March 6, leaving 211 workers out of jobs.
The retail industry more broadly has also seen untenable strain, leading to mass cuts across operations. On Thursday, Washington-based outdoor retailer REI announced it would lay off 357 employees across the board, including 200 corporate employees and 121 workers at its distribution centers. Macy’s last week disclosed that it would lay off 3.5 percent of its total workforce, amounting to about 3,500 employees across its corporate offices and as a result of store closures. Meanwhile, incoming Levi’s CEO Michelle Gass will begin her tenure on Monday by instituting a two-year plan to reduce global corporate headcount by 10 to 15 percent in the first half of 2024.
