Wholesale supply distributor Essendant plans to lay off 150 workers in the Phoenixville area and close its location there, as it looks for a way to avoid liquidating the whole company.
The distribution center at 125 Green Tree Rd. in Upper Providence Township, which the company referred to as the Oaks facility, is expected to shutter around Oct. 3, said Marcela Sztainberg, who leads human resources at Essendant.
The Illinois-based company has been operating out of the 558,704-square-foot Phoenixville facility for roughly 20 years, said Sztainberg. Its current lease expires in 2031.
Essendant several years ago merged with private-equity owned Staples. The deal was announced in 2018 as an acquisition by Staples, and the Federal Trade Commission scrutinized the combination over concerns that the deal would harm competition in the office supply industry. The companies ultimately agreed to limit Staples’ access to Essendant’s customer information.
Workers at the Phoenixville site earn $46,718 annually on average, said Sztainberg. She said the company does not plan to offer them positions at other company locations.
Sztainberg did not provide a reason for the closure. But the company has been going through several changes recently.
Industry reports note that Essendant has been shifting away from office supplies to focus the business on other products, including janitorial items and technology. Late last year the company also announced a partnership with transportation and logistics management company Hub Group, as part of its new delivery model.
Late last year, the company issued layoff notices for facilities in Florida, Texas, North Carolina, and Ohio, The Houston Business Journal reported.
In a layoff notice filed this week with the Pennsylvania Department of Labor and Industry, Sztainberg wrote that Essendant was looking to sell off some of its assets.
“The company has been exploring various strategic alternatives, including potential sale transactions involving certain of the company’s assets and operations, and securing additional capital to avoid liquidation of the company,” the notice reads. “At this time, the company does not know if these efforts will succeed.”
Essendant’s website indicates that it carries brands such as Clorox, Rubbermaid, and Colgate-Palmolive. It distributes items including batteries, calculators, printing supplies, hand sanitizer, soap, and trash bags.
Originally called Utility Supply Co., the company was incorporated in 1922. It opened its first retail store in 1937 and by 1978 functioned as a wholesale supplier of office products, according to the business’ website. It was renamed Essendant in 2015.
The company went public in 1981 and in 2017 reported $5 billion in net sales. It became a private company following the Staples merger.
