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Gildan To Consolidate Retail Distribution Operations In Charleston, SC

Montreal-based branded basic apparel manufacturer Gildan Activewear Inc. has announced it will close its Fort Payne, Ala., and Martinsville, Va., retail distribution centers and consolidate those operations to a new, state-of-the-art distribution center and office building in Charleston, S.C. The facility, which Gildan acquired last month for approximately $20 million, will house the company's retail operations, including sales and administrative functions.

"We believe this will allow us to achieve greater synergies and also maximize overall cost efficiencies," said Genevieve Gosselin, Gildan spokesperson. The move is expected to be completed by the end of May 2010.

Gildan will offer jobs at the Charleston facility to the approximately 250 employees impacted at the Fort Payne and Martinsville centers. "We have asked [the impacted employees] to relocate to the new facility and truly hope they seize the opportunity and choose to remain employed by Gildan, but for those who choose not to relocate, Gildan has committed to facilitate their transition to a new job or educational opportunities," Gosselin said.

In other company news, Gildan is building a sock manufacturing facility in Rio Nance, Honduras, and expects construction to be completed during fiscal 2010. This will be an addition to its sock facility and two activewear and underwear manufacturing facilities in Rio Nance. Gildan's Fort Payne sock manufacturing facility will remain in operation.

December 22, 2009