Malouf to close two warehouses displacing 52 employees

Sam and Kacie Malouf started the bedding company in 2003 and ran it by them selves until they hired their first employee around 2010.

NIBLEY— Malouf™ announced Friday they are closing their Tremonton and Logan warehouse facilities and transitioning the Logan space into a returns and logistic support center.

The different areas at Malouf are open helping communications between employees.

The bulk of their Western distribution will be moved to a newly acquired location in Delano, CA. The city has a population of about 53,000 people and is approximately 30 miles north of Bakersfield.

Of the bedding company’s 345 Utah employees, 52 work in the warehouse operations and their positions there will be discontinued.

CEO Sam Malouf said this is never something you want to do as a company, but it’s what makes sense for the long-term sustainability of a growing enterprise.

Our Utah distribution teams got us to where we are today and have worked incredibly hard for 14 years,” he said. “We’re going to do everything we can to take care of them.”

Some of the affected employees will retain their positions and operate a new returns and logistics support center in the Logan facility. Others will be given the option to transfer to the new California facility, or their existing facilities in North Carolina, Texas, and Ohio.

Malouf™ will cover relocation costs associated for employees and their families.

The strategically located building adds 1.2 million square feet to the company’s distribution network allowing the company to better serve its clientele in the western United States.

The new warehouse was a retired distribution center for Sears and is fitted with a storage racking system and 185 dock doors, and miles of conveyers connect through the building. The set-up will promote increased productivity and efficiency.

Logan was the original shipping center for the company’s nationwide distribution. As the Malouf™ enterprise expanded, their distribution footprint increased to over 5.3 million square feet in five strategic locations.

Human resources will also offer placement services to find jobs in other internal departments or with other employers in Cache Valley.

All employees will retain their positions through the 90- to 120-day transition period. If they opt not to transfer, the company will offer additional severance pay equal to one month of their salary.

Malouf located in Nibley acquired Impact Collective LLC and its app, which has been shown to help people dealing with Depression and Anxiety, Substance Abuse and Sexual Compulsive tendencies .

The growing furniture and bedding company is currently preparing the California building for operations and plans to start shipping product out of the facility later this year.

The company will continue to develop their Nibley location as the global headquarters.

Malouf™ mattresses, adjustable bed bases, furniture, pillows, sheets, mattress protectors, bed frames and mattress toppers are available in over 15,000 retail partner locations in the U.S. and in over 25 countries.

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10 Comments

  • VetDad June 27, 2020 at 5:06 pm Reply

    And this is how Sam Malouf says thank you to those employees. He obviously has no loyalty for his warehouse workers that have worked so hard.

    • Blayne June 27, 2020 at 11:13 pm Reply

      This is too bad. I always heard from people who worked there what a great place it was to work. I doubt they feel that way anymore. Good luck in that miserable dump called California. I’m sure their next stop is China.

  • Linda June 27, 2020 at 7:45 pm Reply

    Cost of living is way higher in CA, even in Delano! How will these workers, who transfer, afford to buy a house or even rent. Hopefully they will get raises to match their new cost of living. And, last I saw Delano is not a great place.

  • Kevin June 28, 2020 at 12:14 am Reply

    I just moved here from Bakersfield last year to get away from all of the California problems. The cost of living, crime, and a morally corrupt environment. I feel for the employees that go there. They are in for a rude awakening. It is truly a 180 degree change from Cache Valley.

  • Jaime June 29, 2020 at 4:09 am Reply

    You people saying Malouf is wrong for this sound SO entitled and ignorant. First, why shouldn’t a company be allowed to grow and make changes that best suit that growth? Second, Malouf is well known for how great they treat their employees. Third, those workers have been given 120 days notice (not two weeks). Fourth, they’ve been given assistance in finding new jobs within or outside the company. Fifth, they’ve been offered paid moving expenses to one of Maloufs other distribution centers. Sixth, they’ve been offered a month of paid severance if all the above fails. Wow, that Sam Malouf sure seems like a jerk, huh? Bet the employees at that closed Sears distribution center wish they’d worked for Malouf!

  • Selmore foster June 29, 2020 at 6:08 am Reply

    Based on former employees comments, this company is on of the best at spinning the truth. I have been told they spend millions of dollars to control their own narrative online to make them sound like they are best company to work for. However, they sell the same products online to consumers (DTC) below what they sale the same products (with different name) to retailers.

    • Current Employee That Actually Knows What He's Talking About June 30, 2020 at 1:03 pm Reply

      Based on comments from current employees that actually know what they’re talking about, none of that is true.

  • Beth June 29, 2020 at 8:58 am Reply

    I work at Malouf, and when they announced this last week it was clear it was a really tough call. I think Malouf is an amazing place to work, and Sam is trying as hard as he can to support each employee no matter what they decide. I think he’s dealing with the situation as well as he can, and using Cache Valley as a center for shipping just doesn’t make a ton of financial sense. He made the best decision of the company!

  • Melissa June 29, 2020 at 2:35 pm Reply

    If the HQ of Malouf is still in CV in a few years I’d be shocked. Local companies that go big tend to relocate their warehouses, then eventually move their HQ when they get sold, or acquire some other large company and consolidate. It’s not personal, it’s just what happens when businesses grow. I hope the local employees are being realistic about their long term future at the company.

  • John Peterson July 8, 2020 at 4:32 pm Reply

    Your dumb miserable bean brains, Malouf is the best thing that happened to cache valley and the best job simple workers will ever have in Logan.

    If business needs grow and they have to move you should be grateful at least HQ is in Logan.

    Sam Malouf is the best human being I ever known.

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