Borders Group, Inc. has announced that its facility in Grove City will close.
Representatives from company headquarters, based in Ann Arbor, Mich., notified employees on Sept. 10. In a press release the company stated that, in order to enhance the efficiency of its distribution network, the company will transfer the processing and shipping of music and movie products from the Grove City distribution center to facilities the company operates in California, Pennsylvania and Tennessee.
The Borders Group Distribution Center is located at 3900 Gantz Road. It is a 172,000 square-foot facility with approximately 130 employees. It opened in 1996 and warehouses and processes all multimedia products (CDs and DVDs) that Borders ships to its stores. The transferring of merchandise will begin early in 2008. The Grove City facility will close in the fiscal fourth quarter of the year.
"To best serve our customers, it is critical that we get the right book, music and movie titles to the right stores at the right time," commented Fred Boehler, Borders Group’s vice president, logistics. "Looking at our total distribution network, we determined that we could increase speed to our stores by consolidating the multimedia products with the books already being shipped to stores from our distribution centers in Mira Loma, Calif., Carlisle, Penn., and Nashville, Tenn."
Borders Group has put together an incentives program for employees who remain in good standing and stay on through the transition. That program includes bonuses, severance and job placement services to help employees find positions following the transition.
"Our early announcement of this change provides the employees and our company time to work through the transition," said Boehler. "We deeply appreciate the great work and commitment that the employees of our Grove City multimedia distribution center have given the company over the years, and we are committed to helping each employee through this process and assisting them in gaining new employment when the time comes."
Grove City Mayor Cheryl Grossman said this situation is unfortunate.
"There are about 21,000 jobs in this city and every job is important," said Grossman. "I am hopeful that the property owners will find new tenants and the employees will find other employment in a timely manner."
The Borders Group Distribution Center in Grove City did not comment on the matter.