September 07, 2017
Cintas to Close Distribution Center, Lay Off Staff
Top 40 distributor Cintas (asi/162167) has announced plans to gradually close an Atlanta distribution center and centralized stockroom over the next year, a move that will lead to 200 employee layoffs. The affected sites are former G&K Services facilities that Cintas acquired through a 2016 purchase.
“Our strategy is to focus on the optimal distribution structure to facilitate excellent customer service and future growth across our entire organization,” said Terri Cain, vice president of distribution for Cintas. “As part of our integration of the distribution network we acquired from G&K, the company has made the decision to shut down these facilities and integrate the products into other distribution centers and stockrooms across our company.”
Cintas is encouraging laid off workers to apply for open jobs at one of its other 10 facilities in Atlanta. If continued employment isn’t available, Cintas said it will provide severance pay, optional continued healthcare coverage and job placement help to those affected by the closures. “It is a top priority for the company to assist these employee-partners and their families throughout this transition,” Cintas said.
The Atlanta closures are the latest in a series of similar moves by Cintas. Earlier this year, Cintas closed a legacy G&K plant in Indianapolis, cutting nearly 70 positions at the facility. Separately, Cintas closed G&K’s corporate office in Minnetonka, MN, laying off about 230 employees there.
In August of 2016, Cintas acquired G&K, which also provides uniform rentals, for $2.2 billion.