The week brought bad news for many catalog operations workers in Richmond and Roanoke, while the outlook is slightly sunnier for Virginia Beach.
On March 23, ZelnickMedia’s Direct Holdings Worldwide, the parent of Lillian Vernon Corp., announced it will move the back-end operations of its Time-Life music and video business to the gift cataloger’s Virginia Beach, VA-based national distribution center.
Time-Life will close its facilities in Indianapolis and Richmond, VA, cutting its work force by about 100 jobs. The remaining 200 jobs in Time-Life’s order fulfillment and distribution center, call center and MIS departments will be moved to Lillian Vernon’s 827,000-sq.-ft. distribution center. Lillian Vernon spokesperson David Hochberg says the move is expected to be completed by June.
Direct Holdings is an investment vehicle that was created by Ripplewood Holdings LLC and ZelnickMedia Corp. when they bought Lillian Vernon last July. Direct Holdings acquired Time-Life’s direct marketing subsidiary from Time Inc. in January.
Meanwhile, about 219 miles West of Virginia Beach, Home Shopping Network announced on March 24 that it will shut down one of its two Roanoke Valley distribution centers, eliminating 250 jobs. The television/Web/catalog marketer plans to close its Salem, VA, distribution center by late summer.
About 20% of HSN’s Roanoke Valley work force will be laid off, although about 200 of the Salem workers will be reassigned to HSN’s Bonsack, VA, facility. Virginia’s loss is Tennessee’s gain: HSN plans to open a new larger East Coast DC in Piney Flats, TN—about 165 miles from Roanoke.