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 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.
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.