Beleaguered Family Dollar distribution center in West Memphis to close permanently
The Family Dollar distribution warehouse in West Memphis, Arkansas, is closing permanently following a U.S. Food and Drug Administration Report released in February that detailed a massive rodent infestation.
Randy Guiler, the vice president of investor relations for Dollar Tree Inc., the company that owns Family Dollar, confirmed the closure with The Commercial Appeal; employees will be laid off starting in mid-July.
In total, 320 employees will lose their jobs with Family Dollar, according to West Memphis Mayor Marco McClendon. The company is one of the largest employers in West Memphis.
Related: Memphis leaders call for investigation into Family Dollar after rodent infestation discovered
Read this: Memphis pastors urge church members to boycott Family Dollar stores because of unsanitary conditions
McClendon delivered remarks to the media Wednesday. His primary concern, McLendon said, is the impact on hundreds of workers in West Memphis.
According to McClendon, the company cited the age of the building as a primary factor in the decision to close the 30-year-old facility.
In a statement issued to the media, the company pointed again to the age of the warehouse. The decision, the statement said, was part of the company's routine reevaluation of its economic footprint.
"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 and requirements of our stores and customers served by the distribution center," a company spokesperson said.
The company's remarks did not mention the FDA report, which said there was a rat infestation at the West Memphis warehouse marked by at least 1,100 rat carcasses. Throughout the warehouse, inspectors found, there were rat droppings among food products and entire rooms were unused due to the overwhelming odor of decaying rats.
The findings triggered a voluntary recall of thousands of items. More than 400 stores across six states closed their doors in order to rid shelves of the products included in the recall.
In Memphis, community leaders noted the problems at the West Memphis distribution center were in line with their cleanliness standards for their stores in socioeconomically vulnerable neighborhoods.
"We've had countless people impacted by this company. Their main customers (in Memphis) are Black people and Hispanics. They don't treat us like family. They're only concerned about the dollar," said Patricia Rogers in a February interview.
Clergy from North and South Memphis also threatened to enact a boycott of both Family Dollar stores and Dollar Tree stores in Memphis, should the company continue to allow what they described as filthy conditions to persist in stores that, for many, serve as one of the few affordable sources for shelf-stable foods and household products.
As West Memphis officials reckon with the news of the warehouse closure, McClendon said city officials are working state officials to marshal resources for the affected workers.
"I had hoped it was just a rumor when I first heard about it," McClendon said.
McClendon tried to offer assistance to the company in order to keep the warehouse open, he said, but the company reiterated it was a final decision.
"I think it's going to be a major impact for right now," McClendon said of the closure. "I believe that once Family Dollar leaves, we're going to get the warehouse to where it needs to be and try to lure another company in.
McClendon also noted that while the immediate economic impact will be rough, other developments in West Memphis will be announced soon — and ideally those developments will offset the loss of the warehouse jobs.
Previously: As Family Dollar stores begin to reopen, calls for a mass boycott loom in Memphis
More: The Family Dollar problem goes beyond rats. It's about access, community leaders say
The full statement from Dollar Tree Inc. is below:
"Like most companies, we regularly assess our operational footprint to ensure we are running our business in the most effective 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 and requirements of our stores and customers served by the distribution center.
This was a difficult decision we did not take lightly, especially because of our outstanding team in West Memphis, our relationship with the community, and the partnership we have had with the State of Arkansas since 1994.
We are committed to treating impacted associates fairly and respectfully, and we are doing everything we can to support them with their transitions, including providing severance plans to those who are eligible, as well as offering outplacement services and employee assistance programs."
Micaela Watts is a reporter for The Commercial Appeal and can be reached at micaela.watts@commercialappeal.com.
This article originally appeared on Memphis Commercial Appeal: Family Dollar warehouse West Memphis closes for good after FDA report
