A major warehouse in Kentucky is closing down, affecting 150 employees. Wolverine Worldwide has announced the permanent closure of its Louisville operation, with layoffs starting around May 3. The 519,508-square-foot warehouse at 6001 Cane Run Road will close after being sold at the end of 2023.
The distribution center sale increased Wolverine’s cash reserves by $23 million in the fourth quarter. Although the Saucony and Sperry brands were originally intended to continue operating from the location under a lease arrangement, the shutdown is part of a larger restructuring plan to streamline operations.
Wolverine’s Restructuring and Community Impact
Wolverine’s restructuring strategy aims to save $215 million annually by divesting non-core assets, reducing inventory, paying down debt, and right-sizing its cost structure. The corporation has already sold various business lines, including Sperry to Authentic Brands Group and the Aldo Group, as well as Keds and its leather business in the United States.
The Greater Louisville Inc., Louisville’s chamber of commerce, is reaching out to Wolverine to connect displaced employees with local hiring employers. The chamber’s president and CEO, Sarah Davasher-Wisdom, acknowledged the challenges encountered by specific businesses but voiced confidence in the regional economy’s resiliency.
Wolverine, headquartered in Rockford, Michigan, has two more distribution locations in the United States: Howard City, Michigan, and Beaumont, California. The shutdown in Kentucky reflects greater economic challenges, although steps are being taken to assist affected employees while minimizing the impact on the local communities.
Conclusion
Wolverine Worldwide’s decision to permanently close its Louisville facility, affecting 150 people, is part of a restructuring effort to save $215 million yearly. Selling non-core assets and simplifying operations reduce costs. Greater Louisville Inc.
helps displaced workers find local jobs, acknowledging business constraints but expressing confidence in the regional economy. The closure is due to economic issues, but employees and surrounding communities are being supported.