Hanesbrands Axes 75 Jobs in Distribution Center Closure

Apparel giant Hanesbrands will permanently close its High Point, North Carolina, distribution center on Jan. 31, according to a Worker Adjustment and Retraining Notification (WARN) notice filed by the company on Nov. 1. The closure will impact 75 jobs.

The shutdown comes after North Carolina-based Hanesbrands’ June decision to sell its Champion athletic apparel business to Authentic Brands Group for $1.2 billion. The High Point distribution center primarily focused on the Champion brand.

Hanesbrands began looking for an out from the Champion business last fall as the brand continued to struggle. Sales for the label dropped by 26 percent in the first quarter of 2024.

Authentic—which specializes in buying intellectual property and forming partnerships to rebuild brands—saw the acquisition of the 100-plus-year-old Champion as a way to boost its athletic business, which already includes Reebok.

“Over the last few years, the addition of new brands together with the expansion of live events has grown Authentic into a world-leading sports and entertainment licensing company,” Authentic Brands Group chairman and CEO Jamie Salter said at the time of the purchase. “Bringing Champion into the fold further expands our position in this space.”

In February, Hanesbrands suspended operations at its Annapolis distribution center in Winston-Salem, N.C., laying off 159 employees. In 2023, the company cut an estimated 800 positions, including 230 at its Clarksville, Ark., hosiery plant, which also closed and ended Hanesbrands’ domestic cut-and-sew operations.

Hanesbrands most recent earnings saw the company’s quarterly revenue drop 3.8 percent year-over-year for the second quarter to $995.40 million, below analyst estimates of $1.35 billion. The company’s third-quarter earnings will be announced on Nov. 7.