Now closing: Hollywood distribution
Movie Gallery announced it intends to close its Hollywood distribution plant in Wilsonville over the next two months.
January 28, 2009
Wilsonville-based Movie Gallery will lay off all but 25 of its 238 full-time employees at its local distribution plant, the company announced last Thursday.
Those 25 workers will be transferred to other parts of the company.
The layoffs are part of a consolidation effort between the Wilsonville and Nashville, Tenn., distribution centers into a single location.
Operations at the Wilsonville plant will be phased out over the next two months, the company said in a news release. There are 185 employees in Nashville.
“The decision to transfer distribution center operations from Wilsonville to Nashville was difficult,” said Sherif Mityas, chief operating officer and president of retail operations for Movie Gallery. “But we are confident that we are taking the right steps towards creating a stronger company, better positioned for long-term success.”
Movie Gallery will keep its headquarters in Wilsonville, where it employs 389 full-time employees.
The company said it has already notified employees of the consolidation in both Wilsonville and Nashville and is working with the laid-off workers.
Closures such as this one affect more than the company and its employees.
“The biggest impact from the layoffs at Movie Gallery will be the transit tax because that is based on employee payroll,” said city of Wilsonville assistant finance director Cathy Alexander. “Fewer employees mean less revenue but the extent of the impact will not be known for quite some time.”