The Dollar Tree distribution center that got ravaged by a tornado in April appears unlikely to reopen any time soon.
In a statement, the discount retailer confirmed the 1-million-square-foot Marietta, Okla.-based facility cannot be reopened “in the foreseeable future.”
The April 27 tornado ripped through the distribution center, essentially tearing through the building at one of its corners, with the damage from the tornado expanding all the through to the center of the building. Portions of the roof and one side of the exterior was ripped off, exposing hundreds of shelves and boxes inside. Pieces of the building were blown across the interstate into nearby fields, while semi-trucks and cars outside the facility were flung across the area nearby.
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There were no injuries when the tornado directly hit the warehouse.
“As you have seen from the images, our Marietta distribution center (DC) was demolished following the tornados that swept through the community in April,” said a Dollar Tree spokesperson. “Given the facility cannot be reopened in the foreseeable future, we met with our DC team recently to share the incredibly difficult news that the warehouse will close at this time.”
The future of the 456 associates who are employed at the distribution center remains in limbo. Associates will receive pay continuation through June 22, Dollar Tree said in the statement. Employees will also receive severance packages, benefits and access to the retailer’s emotional wellbeing resources.
Dollar Tree already said it had offered temporary work relocation throughout the recovery process, and granted them access to a relief fund. The closest warehouse to the Marietta location is a Family Dollar distribution center in Duncan, Okla. residing 80 miles northwest. Three Dollar Tree facilities are located further way in neighboring states: one in Warrensburg, Mo. outside of Kansas City and two in San Antonio and Rosenberg, Texas.
“We are incredibly grateful for this remarkable team and we remain committed to supporting them through this challenging time,” the company said. “While we hope to have a Distribution Center to welcome associates back to in the future, we are still assessing our go-forward options. As proud members of the Marietta community for more than 20 years, this region remains extremely important to the Dollar Tree family and to our broader supply chain network.”
The center is located roughly 15 miles from the Oklahoma-Texas border, and supplies products to roughly 600 stores across 12 states, including all of Oklahoma, Kansas, Colorado, New Mexico and Texas, and portions of Louisiana, Arkansas, Missouri, Nebraska, South Dakota, Wyoming and Montana.
Following the tornado, Dollar Tree said it reacted “swiftly” to maintain distribution operations, pivoting its logistics network to deliver product to the Marietta-serviced Dollar Tree stores.
In an April 30 release, the company said that its distribution center insurance policies include significant property and inventory coverage. At the time, the company was assessing the value of all potential claims and anticipates that most damages and recovery costs would be covered under the policies.
Extreme weather has permeated throughout southern and midwestern states since late April, putting local supply chains and distribution center operations under more pressure.
A similar occurrence to the Dollar Tree incident happened in Portage, Mich. less than two weeks later, where a tornado ripped through a FedEx Ground facility. The building sustained significant damage, including destroying three van lines, where they lodge vehicles.
In the wake of the May tornado, the company implemented contingency plans, including diverting incoming shipments from the 320,000-square-foot facility to lessen the impacts on service while it remains closed. FedEx is hoping to have the main facility back up and running by Christmas.
All employees were temporarily transferred to one of five locations: in Kalamazoo, Grand Rapids and Lansing, Mich.; or Fort Wayne and South Bend, Ind.
While FedEx wants to have the main facility back up and running by Christmas, the courier brought in a mobile docking facility last month to allow employees to return.
Severe storms in Texas at the tail end of May resulted in a partial roof collapse at the 1.1-million-square-foot warehouse of retail store fixtures manufacturer Madix in Terrell, Texas. A heavy portion of the damage came at the receiving area of the warehouse, which is the designated area where incoming goods are processed.
There is no known timetable for the warehouse’s renovation.
