Badcock distribution plant in Cullman to close
Published 5:00 am Tuesday, October 28, 2014
One of Cullman’s longtime industrial citizens will close its doors next year, when the local Badcock Home Furniture distribution plant in Cullman Industrial Park 1 is shut down and consolidated into a larger Georgia location.
The Cullman plant was one of the first tenants to sign on at the industrial plant in 1990, and has been a mid-size stalwart in the local industrial climate for nearly 25 years. The plant currently employs 75 people, and a statement sent to employees and store managers notes the company hopes to relocate “each and every employee” to a new plant in LaGrange, Ga. For those who do not choose to move, severance packages will reportedly be offered.
Along with the Cullman plant, Badcock also plans to shutter and relocate operations from a similar plant in Thomson, Ga. The Cullman plant measures approximately 105,000-square-feet, while the new joint plant will be 535,000-square-feet in size. A statement from Badcock president Mike Price notes the company has “outgrown” the smaller distribution centers and needs to consolidate the smaller plants into a larger facility at a central location.
“As many of you know, we’ve outgrown both of these buildings many years ago and in order to continue our growth, we need to expand our buildings considerably. Our network of stores has also changed over the years and a LaGrange, Ga., location not only provides the best logistical location, but it also gives us much greater growth potential,” Price wrote. “This was a very difficult decision for the owners and management and many factors and considerations went into this decision. We value each and every employee’s service to Badcock and we will do our best to help our Cullman and Thomson employees through this life changing event.”
Employees were reportedly notified of the plan late last week. The plant is expected to close in the fall of 2015. The long lead time will reportedly allow the company time to finalize the new location and accommodate relocations. When contacted Monday by The Times, Cullman plant manager Jeff Baxter said he was not at liberty to comment further.
Cullman Economic Development Agency Assistant Director Dale Greer said he was saddened to hear of the closure, but noted his organization will do everything within its power to assist.
“Anytime you have a closing it’s disappointing, because you try to put your best foot forward to keep companies here to grow and expand. But, we also always caution everyone that when there’s a decision made they look at other alternatives, options, and possibilities. You win a lot of those, and we work hard to keep those in place. But, sometimes you don’t,” he said. “It sounds like they made a genuine effort to treat employees well and fairly, but I’m sure it’s a shock and disappointment to them, as well. For us, we’ve been in contact with the company to find out more about the building and if we can help market it, to try and find a new tenant to replace some of those jobs.”
CEDA Director Peggy Smith added the consolidation is a stark reminder of the high-level of recruitment that takes place for industrial projects in communities around the southeast — and the premium of having available property for expansions. Smith noted the Badcock location was essentially landlocked, which prevented her office from pitching a strong alternative to the consolidation.
“It just proves they always have an option and a choice, and it doesn’t mean they’re here forever,” she said. “They have business decisions they always have to consider. That’s why we need to work harder than ever to retain the great industries we have in Cullman.”