Adidas to lace distribution more tightly
At several Adidas distribution facilities around the country, the other shoe is about to drop.
Adidas, which acquired Canton, Mass.-based Reebok in 2005, said it would close five existing facilities around the country and consolidate its distribution in Spartanburg, S.C. by 2009.
The company said it plans to build a footwear facility measuring about 1.1 million square feet and an 800,000-square-foot apparel facility in Spartanburg, a few miles from an existing warehouse.
“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 at Adidas.
An Adidas warehouse in Memphis, and a Reebok warehouse in Hebron, Ky., that handle apparel will be shut down in 2008, and the clothing will be handled in Spartanburg.
Operations at the existing Adidas footwear warehouse in Spartanburg will be closed the following year and moved across town, and will be combined with Reebok shoes that currently flow through warehouses in Stoughton and Norwood, Mass.
The decision to close warehouses in Massachusetts is a blow to ports in the Northeast, particularly Boston. Reebok was a big user of all water services from the Far East to Boston.
U.S. distribution centers that are not affected by the consolidation include: the company’s sports licensed division facilities in Mattapoisett, Mass., Indianapolis, Ind., and Cedar Rapids, Iowa; the Rockport Co. facility in Lancaster, Mass.; and the Taylor Made-Adidas Golf facility in Carlsbad, Calif.
“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 Adidas. About 375 workers will be affected.