First QVC said it was closing a facility and laying off employees, now it’s HSN.
The No. 2 home shopping network told federal regulators Tuesday that next year it will consolidate two of its distribution centers, resulting in 350 people losing their jobs.
In its SEC filing, HSN said that as part of its “supply-chain optimization initiative designed to increase operational efficiencies,” it will close its distribution center in Roanoke, Va., and move its operations to its to its distribution center in Piney Flats, Tenn.
“The consolidation will involve the eventual elimination of approximately 350 positions at the Roanoke distribution center,” the home shopping channel said. “HSNi expects the closure and consolidation efforts to occur in accordance with an 18-month transition plan and be substantially completed by the end of 2016.”
Earlier this month, QVC said it was closing its call center in Port St. Lucie, Fla., which will result in about 800 employees being laid off.
As a result of its consolidation, HSN said its expects to incur from $4 million to $5 million in total charges, “almost all of which will result in future cash expenditures.”
Those charges include roughly $3 million to $4 million in employee-related expenses, including retention incentives and severance payments.
Other exit-related costs are expected to be about $1 million. HSN expects to record roughly $3 million of the exit costs in the second quarter this year.
HSNi will exclude these exit costs from its Adjusted EBITDA results.
According to the Herald Courier, HSN will be adding 40 jobs to its Piney Flats fulfillment center and investing $48 million in it.
“The decision to transition HSN’s fulfillment operations is based on a multi-year initiative to enhance the company’s fulfillment capabilities and maximize efficiencies through automation,” HSN said in a statement published by the Herald Courier.
“The retail industry continues to evolve and customer expectations are more demanding than ever. As such, we are always identifying ways to innovate and optimize our operations to deliver an enhanced customer experience.”
“We sincerely thank our colleagues in the Roanoke facility for their hard work and dedication to HSN and appreciate the support of the Roanoke community at large,” the company’s statement said. “We are committed to assisting our employees during this time of transition.”
HSN continued, “We will assist in the transition by ensuring that any employee affected by this consolidation will be aware of other available career opportunities with HSN, including those at the Tennessee facility.”