VF Corp. to Lay Off 242 Employees in Virginia Distribution Center Closure
VF. Corp is planning to close a distribution in Martinsville, Va., resulting in over 200 employees losing their jobs.
According to a Nov 15 WARN notice filing, the footwear conglomerate, which owns Vans, The North Face and other brands, plans to close the Virginia distribution center and begin layoffs by Jan. 19, 2025. The closure, which will occur in March 2025, will impact 242 employee roles, according to the filing.
VF told FN in a statement that it decided to close the center in May after evaluating the best way to ship its products to consumers, as part of the company’s “Reinvent” strategy that it rolled out in 2023. As part of this closure, VF will now ship products from its center in Ontario, Canada that it opened last year and via a third-party logistics provider.
“This transition will deliver operational efficiencies, consolidate our operations, and reduce real estate costs,” VF said in a statement. “The Martinsville distribution center will continue to operate as it currently does through March 2025, and we will support the team through the final days of operations. The entire VF organization extends its deepest gratitude and appreciation to our teammates who work within the facility for their steadfast dedication and commitment for over the last two decades.”
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In October, VF swung to a profit and posted better-than expected revenues in the second quarter. At the time, VF chief executive officer Bracken Darrell said in a statement that the company is still on track to hit $300 million in savings by the end of fiscal year 2025 as its Reinvent turnaround plan takes hold. At its investor day that same month, VF announced a new set of medium term financial targets that included achieving an adjusted operating margin of at least 10 percent, adjusted gross margin of at least 55 percent and adjusted SG&A as a percentage of revenue of 45 percent or less, all by fiscal year 2028.
