Avon makes ‘difficult decision’ to close two distribution facilities

Avon has announced that it will close its distribution facilities in Atlanta, GA, and Pasadena, CA.

The decision makes up part of the first steps of Avon’s global Cost Savings Initiative announced in December, which aims to concentrate resources on activities that are considered high priority, while boosting efficiencies and reducing costs, in order to restore the health of the US business.

The two facilities will see their orders transition to other branches; any orders processed at the Atlanta branch will transition to Avon’s Zanesville, OH, facility in the next few months, with the view of this being completed by the summer. Meanwhile, plans for the Pasadena facility are in the development stage and are expected to transition in 2014.

In a statement, the company said: “The decision to close the two branches was difficult and not reached lightly. Avon’s Atlanta and Pasadena facilities have served Avon and Avon’s US representatives with distinction for many decades; however, these steps are essential in order to turn around the business by driving top‐line growth and aggressively managing the cost base. These steps in the US, together with actions being taken globally, will help stabilise the company and begin the process of returning Avon to sustainable growth.”