Levi Strauss & Co. (LS&Co.) is set to close its distribution center in Hebron, Ken., next month.
Spectrum News reported that a company letter filed under the Worker Adjustment and Restraining Notification Act was sent to the Kentucky Department of Workforce Development on June 16. The closure will affect approximately 346 employees at the company-owned distribution center. LS&Co. said some will be able to apply for a job at another company location.
Spectrum added that Levi’s did not give a reason for the closure. However, the company announced earlier this year that it would undergo a restructuring plan to consolidate operations and cut costs as it pivots to being a DTC-first brand. This included a reduction of its corporate workforce by 10-15 percent.
Related Stories
As part of the strategy called Project Fuel, the company said it would change its distribution strategy from an owned and operated model to a mix of owned and third-party operated distribution centers used to warehouse and ship products to wholesale customers, retail stores and e-commerce customers. In certain locations around the globe, LS&Co. said it had already consolidated distribution centers to service multiple countries.
Levi’s is shrinking its footprint in other ways. It ended Levi’s low-margin product line Denizen and exited the footwear category. It also offloaded Dockers to Authentic Brands Group in May for $311 million.
LS&Co. raised its outlook for 2025 last week following positive Q2 results. Revenues rose 6 percent to $1.4 billion, a 9 percent increase on an organic basis.
