Lululemon is in the process of closing down its distribution center in Washington and laying off 128 employees, according to a WARN filing submitted on Thursday to the state’s Employment Security Department.
Layoffs are expected to begin June 21, the filing shows. Lululemon plans to shut down the facility by the end of 2024, a company spokesperson told CNBC.
The company said that after it reviewed its infrastructure and fulfillment strategy, it made the decision to close down the Sumner, Washington-based facility, which it said was one of its “smaller distribution centers.”
Lululemon plans to keep some employees that work at the Washington facility, but the closure will lead to the “reduction of just over 100 positions.” Those that stay “will relocate to other facilities,” it said, including its distribution center in Los Angeles, which it recently opened.
The athletic apparel company added that it is “committed to supporting” affected employees, but did not say how it plans to do so.
Lululemon’s lease for its Sumner facility was set to expire in July 2025, SEC filings show. The Canadian-based apparel maker will be left with five facilities after it closes the Washington warehouse.
News of the closure comes after the company reported in late March that it was struggling to reach U.S. consumers.
Calvin McDonald, Lululemon’s chief executive officer, told investors during the company’s earnings call that “the consumer is a little soft” in the U.S., and it is “navigating a dynamic retail environment.”
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