Malouf, a Cache Valley-based bedding and furniture company, will wind down its distribution operations in Tremonton and Nibley over the next few months as it moves those functions to a new facility in California.
Malouf has operated a warehouse in Tremonton since 2014, when it purchased the former La-Z-Boy manufacturing plant located at 350 W. 1000 North. The Nibley-based company sold the 675,000-square-foot building in 2018, but has continued to lease about one-third of the space there.
Scott Carr, marketing and communications director for Malouf, said the company has 52 warehouse employees between Cache Valley and Tremonton, including “two or three” full-time workers in Tremonton and about 10 who split time between both locations.
While Malouf is leaving Tremonton, Carr said the company will retain 20 to 30 positions at its Cache Valley facility, which will transition from a warehouse operation into a nationwide returns and logistics center that will also provide support for marketing and other business operations. The transition is expected to be complete within the next three to four months.
He said the affected employees, including those in Tremonton, will have the option to transfer to Malouf’s new distribution center in Delano, California, or to other company facilities in Texas, Ohio and North Carolina, with relocation expenses paid by the company. Those who don’t stay with the company will receive one month of paid severance, and Malouf will work to help them find new employment locally.
In a press release, Malouf said its new, 1.2 million-square-foot building 130 miles northwest of Los Angeles is in a more strategic location for serving the western U.S. market as the company has grown significantly over the course of 15 years in business.
“The current Utah warehouses in Logan and Tremonton, while fully functional and efficiently staffed, are outliers in its current high-volume distribution model,” the release stated.
Malouf is currently preparing the California building for operations and plans to start shipping product out of the facility, which previously served as a distribution center for Sears, later this year. The company “is continuing to develop their Cache Valley location as the global headquarters,” according to the release.
In the same release, CEO Sam Malouf pointed out that the company’s distribution workers in Utah “got us to where we are today and have worked incredibly hard for 14 years.
“This is never something you want to do as a company, but it’s what makes sense for our long-term sustainability,” Malouf said. “We’re going to do everything we can to take care of them, no matter what they decide.”