Women’s apparel retailer Appleseed’s is moving about 240 jobs from its Beverly, MA, distribution center to Groveport, OH. Clothing cataloger/retailer Eddie Bauer Holdings plans to add about 300 jobs to its Groveport fulfillment facility. Coincidence?
Not really – Appleseed’s is a sister company to Eddie Bauer, both having the same parent company in private equity firm Golden Gate Capital. Appleseed’s is part of the Orchard Brands unit, which also includes Blair, Draper’s & Damon’s, Lew Magram and Norm Thompson. Golden Gate Capital acquired Eddie Bauer this past June 2009.
The Groveport DC employs about 400 workers. The Salem News (MA) reports that Orchard Brands corporate headquarters will remain in Beverly where Appleseed’s was founded in 1946. Appleseed’s, which operates a dozen stores in New England, moved its call center and 100 jobs to Pennsylvania in 2008.
The move was no doubt made for logistical reasons, says Stuart Rose, managing director with investment firm Tully & Holland. Golden Gate Capital is “a big, well managed company, and they believe distributing out of the Midwest rather than Beverly will save freight and labor expense.”