Kellwood to Close Chico Warehouse Amid Protests
St. Louis-based Kellwood Co. will shutter its Chico, Calif., distribution center, effective Aug. 31, resulting in the layoff of about 160 workers.
“Changes in our business processes requiring less inventory handling and the economics of this facility led to this decision,” said Kellwood Global President Jeffery Streader in a prepared statement.
The warehouse handles distribution for Kellwood’s Koret and Calvin Klein labels.
A phased shutdown will take place between July 13 and Aug. 31.
The warehouse workers have been upset by the decision, not just because they are losing jobs but because Kellwood and union Unite HERE have moved negotiations south from Chico to Sacramento, Calif., about a 100-mile trip.
Workers will be hashing out severance packages with Kellwood in meetings, which may take a couple of days. They do not want to face the inconvenience of travel and leaving their kids behind.
Unite HERE representative Christina Vasquez said negotiations were set in Sacramento because it was the closest union office to Chico. It was either that or Los Angeles or Oakland, Calif., said Vasquez.
The workers’ committee was lobbying Kellwood for meetings in Chico and wanted an earlier date.
Kellwood acquired Koret in 1999. It owns the license to produce Calvin Klein women’s sportswear, which is distributed out of the Chico center. —Robert McAllister
