Beverage distributor Jumbo Beverages is permanently shuttering a warehouse in Grapevine, Texas, on Feb. 29, according to a Worker Adjustment and Retraining Notification (WARN) Act letter dated Jan. 12.
The closure will impact 109 employees, with a majority of the layoffs expected to occur on Feb. 29, while remaining employees will be separated on April 30, according to a notice emailed to Supply Chain Dive.
The letter didn’t state why the distributor is closing its warehouse.
Jumbo Beverages is a subsidiary of distributor Glazer’s Beer and Beverage, and represents 34 beverage companies, including Nesquik, San Pellegrino and Fiji Water, across 13 counties in North Texas, according to the company’s website.
While Jumbo Beverages may be closing its facility, other beverage distributors have been investing in their warehouse operations. Southern Glazer’s Wine and Spirits, for instance, is planning to deploy AI technology and robotics warehouse automation in select distribution centers by 2025. The tech aims to improve order accuracy, fill rates and increase capacity.