Coldwater Creek warehouse closing, layoffs could save $3 million

Jan 21, 2002 10:30 PM  By

Women’s apparel cataloger/retailer Coldwater Creek, which last week said it would eliminate some 150 jobs at its Sandpoint, ID, fulfillment center, expects to save up to $3 million in freight costs by closing the center down, according to a report late last week by the Associated Press. By the end of March, Coldwater will move all shipping functions to its Parkersburg, WV fulfillment center, which is located closer to most of its customers and will thus cut down on the distance most packages travel.

Coldwater also plans to drop its home goods catalog, discontinue its jewelry Website, and lay off 70 employees at 29 of its stores. By consolidating shipping operations in West Virginia, the company will take a fourth quarter charge of $1.3 million-$1.6 million. Due to sales shortfalls, Coldwater expects to lose $4.4 million-$4.9 million for its fourth quarter ending in February. The company predicts a fiscal year 2001 loss of $100,000-$600,000, or $0.01-$0.06 per share.