Levi’s distribution center in NKY closing. More than 300 to lose jobs
A popular denim manufacturer is closing its Northern Kentucky distribution center in Hebron, resulting in the loss of more than 300 unionized jobs.
Levi Strauss & Co. is permanently closing its entire distribution center at 3750 North Bend Road in Hebron, according to a June 30 notice sent to the state required by the Worker Adjustment and Retraining Notification Act.
Approximately 303 employees are anticipated to lose their jobs as a result of the distribution center closure, though some workers will have the ability to apply for a job at other company locations.
Employment separations will begin Aug. 30 for union-represented workers and for those working in the company’s home office.
Bumping rights, those that allow senior staff whose positions have been eliminated to take roles held by less senior staff, are available to union workers who are represented by Workers United Local 2550 and its international group.
Levi Strauss & Co. is the American clothing company known for Levi’s, its line of denim jeans. Media representatives from the company did not immediately respond to requests for comment.
It’s not clear how or whether the Hebron distribution center closure will impact a Levi’s e-commerce distribution center in nearby Erlanger. The company invested more than $48 million in leasing and upgrading a 575,700-square-foot facility that created 300 new, full-time jobs with an average hourly compensation of $27.13, including benefits. It opened in July 2023.
Last year in June, the company told the state it would close the same facility on North Bend Road resulting in approximately 346 employees losing their jobs.
On a Jan. 28 earnings call earlier this year, company leadership said it would push back the completion date of restructuring its distribution network to the end of 2026, according to Supply Chain Dive.
The company had planned to decrease use of its owned facilities in favor of a hybrid model where it leased property operated by third parties in order to still fulfill demand while remaining profitable.
Outsourcing distribution typically allows a company, especially a retailer, to lower packing and shipping costs and can make a business more financially prepared for changes in the supply chain.
The switch is part of the company’s shift to prioritizing a direct-to-consumer strategy, CEO and President Michelle Gass said on the earnings call. By cutting costs on fulfillment, resources can be used to sell at full retail price rather than wholesale which increases per-unit profit and gives a brand access to customer data.
But the transition to third-party sites, including to one in Ohio, is taking longer than anticipated. The company said in January it would keep the Hebron facility open to continue meeting demand even though it was continuing to rack up high distribution costs.
Executive Vice President and Chief Financial and Growth Officer Harmit Singh said at the start of the year increased distribution expenses were projected to continue through the first half of 2026.
The company will report its quarter two earnings covering the months of April, May and June on July 8. Levi Strauss & Co. is traded on the New York Stock Exchange under the ticker LEVI. At market open July 2, the company’s shares were trading at $24.79 per share, up more than 16% or $3.50 compared to the start of the year.
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