Dive Brief:
- Express has been battling lower volumes following its bankruptcy filing, prompting one of its logistics partners to trim the distribution services it provides to the retailer.
- Last month, Bath & Body Works permanently reduced operations at a distribution facility in Columbus, Ohio, used to provide logistics and shipping services to Express, according to a June 18 Worker Adjustment and Retraining Notification (WARN) Act notice.
- The shift was attributed to “a continued decline in the volume of the logistics services provided to Express,” a Bath & Body Works spokesperson told Supply Chain Dive in an email.
Dive Insight:
Express is one of a host of other retailers that have filed for Chapter 11 bankruptcy protection this year, including fellow apparel company Rue21. As part of its bankruptcy plan, Express announced it would close nearly 100 stores as lower demand impacted its supply chain.
The reduction at the Columbus facility will eliminate 75 roles, the Bath & Body Works spokesperson said. The impacted employees were offered severance or the ability to transfer to open roles within Bath & Body Works’ distribution center network. At the end of fiscal 2023, Bath & Body Works owned five office, distribution center and shipping facilities in the Columbus region and used six third-party-operated regional distribution centers throughout North America, according to a securities filing.
Filing bankruptcy is not necessarily the end of the line for a retailer. Department store giant J.C. Penney emerged from bankruptcy in 2020 and has doubled down on its supply chain capabilities since then. Last year, the company announced plans to invest more than $1 billion to improve supply chain operations by fiscal 2025. It already doled out $40 million to upgrade its distribution center in Reno, Nevada, earlier this year.
