Tandy closes Texas facility
Tandy has sold its distribution facilities in Yoakum, Texas, as part of its plan to consolidate distribution operations. It hopes the restructuring plan will improve its customer service offering, increase operational efficiencies and reduce operating expenses by approximately $3-$4 million.
Its distribution operations will now be concentrated at its Dallas distribution centre, which was recently expanded and renovated to include the company's corporate headquarters. The Yoakum site included a significant manufacturing centre for the company at one time, but that function was more or less phased out in 2007, when it was outsourced to China.
"Given we have successfully shifted our business model from product manufacturing to international sourcing, Yoakum is no longer an efficient hub for our distribution," said president and chief executive officer, Rod McGeachy. "Consolidating our distribution operations and our new corporate headquarters into our expanded Dallas distribution centre will better serve our retail partners both in terms of efficiency and cost-effectiveness.”
He added: "In January 2009, Tandy announced a corporate restructuring designed to stabilise our operating platform and reduce operating expenses. Consolidating our distribution facilities is another important milestone in achieving both of those objectives."
Employees at the Texas facility are being offered severance and the opportunity to apply for positions in Dallas. According to reports, 213 jobs will be affected and these jobs will be cut in stages between April 1 and May 28.
