Family Dollar Distribution announces closure

Facility shut down due to rat infestation leaves hundreds without jobs

By JOHN RECH

news@theeveningtimes.com

The beleaguered Family Dollar Distribution Center announced closing its operations in mid-July. The county Workforce office reacted by announcing a Career Expo for today, May 25 from 10 a.m. to 2 p.m. The company deemed its 28-year-old facility, the first to build in the West Memphis Mid-America Industrial Park, inadequate for continued operations while the state attorney general insisted the move was another sign of poor local management. A vermin infestation came to light in February following whistle blower video made public of aggressive rats in the facility.

On February 18 of this year, the FDA announced its latest rat census in the building numbered 1,000. Company efforts at fumigating the 900,000 square foot building had been sporadic and ineffective. The FDA inspected the facility more than one dozen times in January and February this year reporting the putrid smell of dead animals and seeing live rats foraging for food in the pallet racks and along bulk case conveyor lines. Family Dollar then issued a recall to 404 regional stores for food, pet food and medicine impacted by the infestation. Stores temporarily closed to comply with the cleanout orders.

On Wednesday, the company issued a statement to West Memphis Mayor Marco McClendon’s office saying it planned to shut down operations at its outdated DC in the city. The facility planned out bound transfers of goods to other distribution centers in the chain and planned on laying off the remaining workforce starting in mid-July. Company Spokesman Randy Guiler copied the mayor with the announcement saying the 30-year-old building was inadequate.

“Like most companies, we regularly assess our operational footprint to ensure we are running our business in the most efficient and responsible way, as a result of that process, we determined the nearly 30-year-old facility in West Memphis would not be adequate to allow us to continue serving the needs of our stores and customers served by the distribution center.

This was a difficult

See FAMILY, page A3

File photo

A family dollar bulk order picker selects cases for out bound shipping at Family Dollar Distribution. The company announced closing its West Memphis distribution center this summer after deciding the facility was inadequate. The State Attorney General said the documented vermin infestation and the decision to close were both signs of mismanagement at the warehouse. About 230 employees face mid-July layoffs.

From page A1

decision we did not take lightly, especially because of our outstanding team in West Memphis, our relationship with the community and the partnership we’ve had with the State of Arkansas since 1994. We are committed to treating the impacted associates fairly and respectfully, and we are doing everything we can to support them in their transitions including severance plans to those who are eligible, as well as outplacement services and employee assistance programs.”

McClendon provided details of the around the facility shuttering. The DC had employed approximately 400 at its zenith.

“Around 230 employees will work there through July 17, with the vast majority of separations occurring that day, “ said Mc-Clendon. “The remainder, another 90 employees are expected to be separated from employment will leave by October 15 as a result of the closure.”

Arkansas Attorney General Leslie brought a lawsuit against the Family Dollar Distribution Center over health and safety issues concerning the company employees and the customers at the 404 stores served out of the facility. She delineated negligence, deceptive practices and conspiracy to coverup the rodent infestation at the warehouse. The AG deemed the closure as another sign of mismanagement at the facility in a statement released after the closure was announced on Wednesday.

“Family Dollar is punishing hundreds of hardworking Arkansas Families instead of cleaning up the company’s own, illegal business practices that put their employees and consumers at risk,” said Rutledge. “Family Dollar should eliminate deceptive and dangerous conduct.”

Workforce planned a Crittenden County Career Expo open house from 10 a.m. to 2 p.m. today for any job seekers. The expo is slated for the Workforce office at 2003 West Broadway on the north campus of ASU Mid-South and announced 34 prospective employers from both the public and private sector.