Cincinnati, OH, November 17, 2006--Federated Department Stores said it will close three distribution centers early next year to reduce excess capacity.
The company said the three centers -- in Kansas City, Kansas; Warren, Michigan; and Minneapolis -- were acquired in 2005 through its purchase of former rival May Department Stores.
"We simply have too much distribution capacity for the company's needs going forward. In addition, the work performed in some facilities no longer is needed," said Federated Vice Chair Tom Cole in a statement.
The three distribution centers, which employ 296 workers, will begin phasing out operations on February 4, and their volume will be handled by other Federated facilities.
Federated said it also plans to eliminate roughly 249 additional jobs at its distribution centers in Chicago, St. Louis and Bridgeton, Missouri starting in February.
The company said expenses associated with the consolidations are included in its previous estimate of approximately $1 billion in one-time costs for integrating the May deal.
