In this week's issue:
- Big changes coming to beer distribution business.
- Plus we report on company closures and layoffs in: Alabama, California, Connecticut, Indiana, Massachusetts, Michigan;, New Jersey, New York, Oregon, Texas, Utah, Virginia and Wisconsin.
This column was updated at 2.15 pm July 28 removing an item regarding IPRO in Lake Success, NY. The company has been awarded a contract that will allow it not to have to conduct layoffs.)
Big Changes Coming to Northwest Beer Distribution Business
Mt. Hood Beverage, Columbia Distributing Co. and Gold River Distributing are merging and as a result the three firms will be ceasing operations at about 25 distribution centers and laying off more than 2,625 workers across Oregon and Washington. All of the layoffs may not be permanent as the three firms integrate operations in "the next few years."
The merger includes their beer and non-alcoholic beverage distribution businesses in Oregon and Washington, but does not include their wine distribution businesses.
"Industry dynamics are changing at a really rapid pace. The Miller and Coors merger announcement last fall presented a chance for us to look at the opportunities a potential merger would create for all of our stakeholders," said Steve Lytle of Mt. Hood Beverage and co-owner of Gold River Distributing. "After talking with Columbia, we realized that all three companies share common vision and values. It was obvious that a merger would add value for our employees, suppliers, customers and the communities we service in a sustainable and long term way."
"This merger increases the ability for both companies to build a team that will effectively manage the significant increases in the current cost of going to market," said Gregg Christiansen of Columbia Distributing. "Fuel costs have risen sharply, increasing our need to analyze the total number of vehicles we put on our streets as well as the number of miles being driven. Creating a more efficient, combined business in the Pacific Northwest will help enable us to successfully tackle these challenges while still servicing our valued customers and consumers in a timely and more environmentally sustainable manner."
The new organization, which will be named CoHo Distributing, will have annual sales of more than 35 million cases of beer and non-alcoholic beverages and is planning to operate out of consolidated facilities in Seattle, Everett, Portland, Eugene, Medford and Bend.
The company's headquarters will be based in Portland. CoHo Distributing will remain principally owned by the combined existing ownership of the Agnew and Lytle families, the families of Ed Maletis and Ron Fowler, and the principals of Endeavour Capital.
The proposed merger will require the approval of each of the companies' suppliers, who have been notified of the planned merger. This process is expected to take several months with the goal of closing the transaction by early fall.
The permanent reductions will begin Sept. 15 at the following Mt. Hood locations:
- 3601 NW Yeon in Portland, 386 workers
3522 SE Ferry Slip Road in Newport, 13 workers
- 1838 N. Main St. in Warrenton, 8 workers
- 4011 Industrial Ave. in Springfield, 136 workers
- 200 Hawthorne Ave. SE, Suite D484, in Salem, 44 employees
- 1350 NE Cedar in Roseburg, 9 employees
- 1640 Maple St. in North Bend, 16 employees
- 20735 High Desert Lane in Bend, 79 employees
- 3625 Crates Way in The Dalles, 8 employees
- 401 N. Keys Road in Yakima, WA, 63 employees and
- 6420 W. John Day in Kennewick, WA, 47 employees.
The Mt. Hood Beverage operations in Yakima and Kennewick, WA, will be included in the merged company effective January 2009.
Layoffs will begin Sept. 15 at the following Columbia Distributing locations:
- 6840 N. Cutter St. in Portland, 481 employees
- 2600 Prairie Road in Eugene, 136 employees
- 200 Hawthorne Ave. SE, Suite F604, in Salem, 34 employees
- 1305 SE Armour Way, No. 1, in Bend, 36 employees
- 4621A Gruman Drive in Medford, 46 employees
- 840 S. Front St. in Coos Bay, 27 employees
- 92 Hamburg, Unit G, in Astoria, 27 employees
- 2501 E. Valley Road in Renton, WA, 773 employees
- 16910 59th Ave. NE, in Arlington, WA, 100 employees
- 1465 Slater Road in Ferndale, WA, 20 employees and
- 3301 SE Columbia Way, Bldg. 45, in Vancouver, WA, 40 employees.
And layoffs will begin Sept. 15 at the following Gold River locations:
- 501 Airport Road in Medford, 117 employees
- 6025 Wesgo Drive in Klamath Falls, 16 employees and
- 620 S. 9th St. in Lakeview, two employees.
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Closures & Layoffs
The following future closings and permanent mass layoffs were reported in Alabama
- Hyosung USA (formerly Goodyear) is laying off 65 workers at 500 19th Ave. SE in Decatur on Aug. 1.
- Piggly Wiggly (Southern Family Markets) is closing down and laying off 29 employees at 1500 Military St. S in Hamilton this week.
The following future closings and permanent mass layoffs were reported in California
- Avery Dennison Corp. is closing down and laying off 60 employees at 10721 Jasmine St. in Fontana by Nov. 30.
- Beauty Systems Group LLC is closing down and laying off 30 employees at 5001 Industrial Way in Benicia on Aug. 1.
- Entorian Technologies LP is closing down and laying off up to 60 employees at 9400 Toledo Way in Irvine this week.
- EV3 Endovascular Inc./Foxhollow Technologies Inc. is closing down and laying off up to 208 employees at 740 Bay Road in Redwood City by Oct. 6.
- Marysville Truss Plant is closing down and laying off 49 employees at 3721 Feather River Blvd. in Olivehurst this week.
- Mid Valley Youth Center is closing down and laying off 150 employees at 7533 Van Nuys Blvd. in Van Nuys this week.
- Novo Nordisk Delivery Technologies Inc. is closing down and laying off 69 employees at 3920 Point Eden Way in Hayward this week.
- Nutro Products Inc. is closing down and laying off 68 employees at 445 Wilson Way in the City of Industry and 50 employees at 18635 Gale Ave. in the City of Industry this week.
- Rolls Wood Group USA Inc. is closing down and laying off 44 employees at 14700 Doolittle Drive in San Leandro on Aug. 31.
- Sanmina-SCI USA is laying off 180 employees at 2945 Airway Ave. in Costa Mesa this week.
- Siemens Healthcare Diagnostics Inc. is laying off 38 employees at 5700-5736 W. 96th St. & 9625 Bellanca St. in Los Angeles on Aug. 29.
The New Coleman Park nursing home is laying off 134 employees at 62 Colemand St. in Bridgeport, CT,
by Sept. 26.
The following future closings and permanent mass layoffs were reported in Indiana
- Dutchman Manufacturing Inc. is closing down and laying off 116 employees at 17704 County Road 38 in Goshen on Aug. 24.
- Mitsubushi Heavy Equipment Climate Control Inc. is closing down and laying off 60 employees in Franklin on Sept. 12.
- Newport Chemical Depot is laying off 130 employees in Newport on Sept. 1.
- Republic Airways based in Indianapolis is laying off 500 employees nationwide on Sept. 10.
- Visteon Indianapolis is laying off 200 employees at 6900 English Ave. in Indianapolis this week.
The following future closings and permanent mass layoffs were reported in Massachusetts
- Harman Specialty Group is laying off 66 employees at 3 Oak Park Drive in Bedford starting this week.
- Kronos is laying off 79 employees at 2 and 3 Omni Way in Chelmsford by Aug. 29.
- Pliant Corp. is laying off 103 employees at 10 Greenfield Road in South Deerfield starting this week.
The following future closings and permanent mass layoffs were reported in Michigan;
no layoff dates were specified.
- Brazeway Inc. is laying off 60 employees in Albion.
Guardian Automotive Corp. is closing down and laying off 78 employees at 23751 Amber Ave. in Warren.
- Handleman Co. at 500 Kirts Blvd. in Troy is closing down and laying off 185 in Troy.
- Kaneka with two plants in Jackson is closing down and laying off 50 in Jackson.
- Plastech is closing down and laying off 57 employees at 5020 White Lake Road in Clarkston and another 39 employees at 2864 Dormax St. SW in Grandville.
- Spirit Airlines Inc. is closing down and laying off 142 employees at 24660 Lahser Road in Detroit.
The following future closings and permanent mass layoffs were reported in New Jersey
- Abbott Laboratories is laying off 83 employees at 300 Interpace Pkwy. in Parsippany on Aug. 29.
Comfort Inn/Econo Lodge is laying off 50 employees in Atlantic City on Sept. 1.
- Delaware North is laying off 242 employees in Newark on Sept. 1.
- Intercall is laying off 121 employees at 415 Hamburg Turnpike in Wayne on Oct. 31.
- Lehigh Press is laying off 206 employees at 7001 N. Park Drive in Pennsauken on Aug. 26.
- Liz Claiborne is laying off 92 employees at 120 Herrod Blvd. in Dayton on Aug. 22.
- Ortho Biotech is laying off 260 employees at 430 Route 22 in Bridgewater on Sept. 1.
- Zinsser Co. is laying off 61 employees at 173 Belmont Drive in Somerset on Aug. 29.
The following future closings and permanent mass layoffs were reported in New York;
no layoff dates were specified.
- American Axle & Manufacturing Inc. is closing down and laying off 260 employees in Tonawanda.
- Angiotech Pharmaceuticals Inc. (B.G. Sulzle) is closing down and laying off 175 employees at 1 Needle Lane in North Syracuse.
- IWCO Direct is laying off 214 employees at 75 Marcus Drive in Melville.
- JP Morgan Chase (Bear Stearns) is laying off hundreds of employees in New York.
- MedUS Services LLC (HealthNow New York Inc.) is laying off 45 employees in Binghamton.
- The Home Depot is closing down and laying off 88 employees at 5949 Rome Taberg Road in Rome.
- UBS Investment Bank (MSG) is closing down and laying off 195 employees in New York.
- WellPoint, aka National Government Services is closing down and laying off 188 employees at 2651 Strang Blvd. in Yorktown Heights.
Nike is closing its distribution center at 27255 SW 95 Ave. in Wilsonville, OR,
on Sept. 15 and laying off 176 employees; the action will also result in the layoff of another 130 Kelly Services employees.
The following future closings and permanent mass layoffs were reported in Texas
- Alcoa Inc. is temporarily laying off 300 employees at its smelter in Rockdale due to power supply problems on Aug. 21.
- American Airlines is laying off 224 employees across the state at airports in Austin, San Antonio, Houston, Fort Worth and El Paso on Sept. 5.
- Armstrong McCall PP is closing its distribution center and laying off 50 employees at 6505 Burleson Road in Austin on Sept. 12.
- Delfingen US Inc. is laying off 47 employees at 4323 Interstate Way in San Antonio on Aug. 31.
- Home Interiors and Gifts is laying off 116 employees at 1649 W. Frankford Road in Carrollton on Aug. 31.
- Select Specialty Hospital-Conroe Inc. is laying off 85 employees at 506 Medical Center Blvd., Suite 210, in Conroe next week.
The following future closings and permanent mass layoffs were reported in Utah;
no layoff dates were specified.
- La Z Boy is closing down and laying off 650 workers at 350 W. 1000 North in Tremonton.
- Weather Shield Mfg. Inc. is laying off 100 workers at 2990 S. 800 West in Logan.
The following future closings and permanent mass layoffs were reported in Virginia
- American of Martinsville is laying off 400 workers at 1129 E Church St. in Martinsville by Sept. 30.
- MTI Groendyk Inc. is laying off 67 workers at 8020 Whitepine Road in Richmond by Sept. 30.
- TeleTech is laying off 532 workers at its call center at 421 Butler Farm Road in Hampton by Sept. 30.
The following future closings and permanent mass layoffs were reported in Wisconsin
- General Mills is closing down and laying off 86 employees at its taco shell manufacturing plant at 5045 S. Pond Road in Poplar on Sept. 11.
- Midwest Airlines is laying off 1,193 employees at 6744 South Howell Ave. in Milwaukee on Sept. 13.
- Schreiber Foods Inc. is laying off 135 employees at 425 Pine St. in Green Bay and another 135 employees at 2321 Jefferson St. in Wisconsin Rapids on Sept. 18.
For news of retail downsizings, see CoStar's Retail News Roundup
, a weekly report on retail expansion plans, acquisitions/mergers/sales, closings, bankruptcies and more written by Sasha M. Pardy, senior news editor.
For news of companies with increasing space needs, see Expansions & Relocations
, a weekly column of major corporate headquarters expansions and relocations.
For news of companies shedding commercial space, see Closures & Layoffs
, a weekly listing of future corporate downsizings.
For news of property financing and a listing of loans nearing their maturity, see Property Finance
, a weekly column of commercial real estate finance news and loan leads.
For news of properties about to go through a change of ownership, see Under Contract
, a weekly listing of properties to be sold or acquired.
For news of distressed properties, see Watch List
, a weekly column of property and credit market conditions and real estate investment opportunities.