Local mattress and bedding company Malouf last month announced plans to close its local warehouses.
The company’s original warehouse in Nibley and a second in Tremonton will no longer serve as the Western distribution centers for the company as Malouf purchased an old Sears distribution building in Delano, California. The purchase adds 1.2 million square feet of space — roughly five times the size of the Nibley warehouse.
“We’re working on a different scale when it comes to some of these new distribution centers, and as Malouf grows and as we continue to introduce new products, we need more space to be able to have these products to be able to ship them efficiently,” said Scott Carr, Malouf’s director of marketing and communication.
Currently, 52 of Malouf’s 345 Utah-based employees work at the warehouses in question. While the Tremonton building is leased and will be closed entirely, the Nibley warehouse is attached to Malouf’s main headquarters and will be transitioned to a return center and logistics support warehouse, Carr said.
“We will be retaining about 20 or 30 of the positions, and so the bulk of the warehouse employees will be able to stay on in one of those capacities,” he said.
In addition to the creation of new positions in Cache Valley, Malouf has pledged to help cover relocation expenses for employees who’d like to transfer to another position in any of the other warehouses, such as Ohio, Texas, North Carolina or the new facility in California.
“This is never something you want to do as a company, but it’s what makes sense for our long-term sustainability,” said CEO Sam Malouf in a statement announcing the decision. “Our Utah distribution teams got us to where we are today, and have worked incredibly hard for 14 years. We’re going to do everything we can to take care of them, no matter what they decide.”
For those who choose not to remain with the company after the 90- to 120-day transition, a severance package of one month’s pay will be provided.
Even for those not affected by the transition, it’s been hard because, according to Carr, everyone is like family.
“Everyone knows each other really well,” he said. “And so for those who are affected, it’s been difficult as they’ve kind of thought about what does this mean for them and their families in the future but also, you know, employees who work in other departments within the company. You know, you have friends, you eat lunch with many employees in the warehouse every day.”
Carr said the company is still planning on building on a second location in Cache Valley as Malouf moves to a “kind of global headquarters expansion.” Malouf is planning to start shipping from the California warehouse later this year.