VF Corp will shutter its distribution center in Henry County, Virginia, the company said Tuesday.
The company, which owns brands like The North Face, Vans, Timberland and Supreme, plans to close the facility, a 500,000-square foot building, in March 2025. It has not yet confirmed how many employees will be affected by the closure.
A spokesperson for the company said the closure is part of the company’s “Project Reinvent” strategy, which it announced in October under CEO Bracken Darrell. As a result of that strategy, the company laid off about 500 employees in December.
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“As part of VF’s Reinvent strategy, we have evaluated how we are shipping products to best meet the needs of our customers. As a result, we have made the difficult decision to close the Martinsville, VA, distribution center,” the spokesperson said. “This transition will deliver operational efficiencies, consolidate our operations and reduce real estate costs.”
The announcement comes about two years after VF Corp announced it would pump more than $10 million into upgrading the facility, which it has been operating in Henry County for two decades. Ralph Northam, the governor of Virginia at the time, authorized a $225,000 grant from the state to help Henry County with the project.
Though grants typically do not need to be paid back by the company, as they don’t function the same way as loans do, if a recipient fails to meet the stipulations or benchmarks for a specific project, they may be required to return grant money. The Virginia Economic Development Partnership did not return Sourcing Journal’s request for comment on whether the state would require VF Corp to return the grant money it put toward the project.
Dale Wagoner, Henry County administrator, said the impending closure will likely take a toll on the community.
“The news of any company closing down is obviously disheartening and provokes a lot of anxiety amongst the affected employees and the community as a whole,” Wagoner said, noting that his office is “working with the company, state and our Economic Development Corporation to find a new tenant for the building.”
Wagoner said he encourages Henry County residents who could face layoffs due to the closure to consider other career paths in the region.
The VF Corp spokesperson said the facility will operate as usual through March 2025 and that the company “will support the team through the final days of operations,” though it did not specify whether it would offer employees affected by the change other positions within VF.
