HSN, Inc. (HSNI) Will Consolidate Two Distribution Centers; Sees 350 Jobs Eliminated

HSN, Inc. (NASDAQ: HSNI) disclosed the following Tuesday:

As part of HSN, Inc’s (“HSNi’s” or the “Company’s”) supply chain optimization initiative designed to increase operational efficiencies, the Company will be consolidating two of its distribution centers in 2016. As a result, on June 16, 2015, HSNi announced its plan to close the distribution center in Roanoke, VA and move its operations from the Roanoke facility to its distribution center in Piney Flats, TN. The consolidation will involve the eventual elimination of approximately 350 positions at the Roanoke distribution center. HSNi expects the closure and consolidation efforts to occur in accordance with an eighteen month transition plan and be substantially completed by the end of 2016.

HSNi expects to incur approximately $4 million to $5 million in total charges, almost all of which will result in future cash expenditures. These charges include approximately $3 million to $4 million in employee-related expenses, including retention incentives and severance payments. Other exit-related costs are expected to be approximately $1 million. HSNi expects to record approximately $3 million of the exit costs in the second quarter of 2015.

HSNi will exclude these exit costs from its Adjusted EBITDA results.

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