Macy's to close LH distribution center
By Andrew Gomes
Advertiser Staff Writer
Macy's West will close Liberty House's major distribution center on O'ahu as early as November, affecting about 200 employees.
The announcement to the staff yesterday, along with terms of a retention-bonus offer, are the first major details to emerge regarding the future of hundreds of Liberty House employees.
Still, it is uncertain how many of the distribution center workers in Campbell Industrial Park will retain or lose their jobs because of the closing.
Macy's earlier this month announced that its takeover of 17 Liberty House stores would result in some layoffs because of duplication with various Macy's operations in California.
Employees affected would be primarily among the nearly 400 people in upper management, administration and distribution. Macy's expects to retain most of Liberty House's 2,600 sales associates.
Employees at the West O'ahu distribution center include receivers, markers who tag merchandise, store display staff, truck drivers, shippers, billers, sales auditors, information technology workers and mail order personnel — about 200 total.
Most distribution center operations will end 120 days after the completion of the purchase of Liberty House by Macy's parent Federated Department Stores Inc. That purchase is expected to be completed as early as July 9, meaning distribution could shut down as early as Nov. 5.
Much of the distribution work would be transferred to the Macy's West distribution center in Los Angeles.
How many distribution staff will be laid off has not been determined yet, according to Mike Montanino, executive vice president of human resources for Macy's West.
"That's still in the assessment stage," he said.
Several distribution center workers said yesterday that a Macy's human resources employee told them "a few" would be retained.
Liberty House employees in other departments — such as advertising, credit services and a few operations currently within the distribution center — will have transition periods ranging from 90 to 180 days.
Retention bonuses of 25 percent of income during the transition period are being offered to employees who stay on with Macy's for the full transition. For workers at the distribution center, the bonus would equal one month's pay.
Eligible employees, regardless of whether they are retained by Macy's, also will receive a one-week vacation or pay bonus that Liberty House promised to those who stayed with the company through at least the last year of bankruptcy and until Sept. 1.
"We're going to honor that," Montanino said, adding that if any eligible employees are laid off before Sept. 1 they will still receive the Liberty House retention bonus.
Macy's will provide severance pay based on an employee's length of service. The company also will provide outplacement assistance for displaced workers.
Macy's human resources representatives have already begun interviewing Liberty House employees, and are expected to begin making job offers the week of July 16 through the end of the month.
"It's going to be tough to pick," Montanino said. "The quality and commitment of the people of this organization has been spectacular. Their loyalty to Liberty House is just incredible."
Andrew Gomes can be reached by phone at 525-8065, or by e-mail at agomes@honoluluadvertiser.com
