Office Depot closing distribution center TEXT SIZE Increase text size Decrease text size By: CHRIS BISHOP Burlington County Times Office Depot plans to close its distribution center on Ikea Drive in Westampton later this spring as part of its ongoing consolidation of facilities.
About 135 employees will be laid off, while another 21 will move to the company's new "combination" center in Newville, Pa., according to Office Depot spokeswoman Melissa Perlman. The combination center brings together services for both the company's retail outlets and its business customers.
Perlman said the employees were notified of the closure March 26. Those who don't relocate to the new plant, which is about 25 miles west of Harrisburg, will receive severance.
The bulk of employees will leave the center at the end of May, with the final group departing June 18, Perlman said.
She said all employees were invited to apply for the 21 jobs at the new building, and relocation assistance would be available.
The new 600,000-square-foot center in Newville has already opened and will eventually employ 250, the spokeswoman said.
The 160,108-square-foot distribution center in Westampton, not far from Interstate 295 and the New Jersey Turnpike, is owned by local developer, Dolan Contractors.
Perlman said the closure is part of the company's strategy to consolidate centers in the Northeast. Advertisement Click Here!
Another distribution center, in Mountain Top, Pa., about 20 miles south of Reading, also is closing to move its operations to the Newville site.
"The consolidation will help reduce costs," Perlman said. "It will lower property expenses, improve productivity and bring greater efficiency."
She said Office Depot plans to combine all its Northeast distribution centers into 12 combination facilities.
The Office Depot spokeswoman said the company doesn't plan to close any retail outlets in New Jersey. A store closed in Delran about a year ago, leaving the closest outlet in Voorhees, Camden County. The Voorhees store is also one of the few in South Jersey.
In late February, the Boca Raton-based provider of office supplies reported a net loss of $77 million, or 28 cents a share, in the fourth quarter, and a loss of $626 million, or $2.30 a share, for the year.
Office Depot has 41,000 employees and 1,584 stores worldwide, the company says.