18 February 2010

Phase-out to begin in January; search for a new tenant begins imminently

According to recent news reports, a Hallmark Cards retail distribution centre, based at the Mitchell Woods Business Park in St. Joseph, is likely to close early next year. New Breed Logistics of High Point, N.C., has been handling distribution for Hallmark at the centre since it opened in 2007.

Hallmark spokeswoman Julie O’Dell confirmed that the facility, on behalf of the Kansas City-based greeting card giant, will begin a phase-out in January. Workload will be consolidated with Hallmark facilities in Liberty, Mo., and Enfield, Conn. The changes result from the Company’s ability to manage its inventories at other facilities.

New Breed Logistics estimated that shutting down the warehouse’s operations would take a few of months in early 2011. Around 65 to 70 permanent employees currently work at the centre, alongside temporary staff for seasonal work.

The St. Joseph Area Chamber of Commerce said efforts will begin to find a new tenant for the 37,160 m2 facility.

New Breed had signed a five-year contract with Hallmark to operate the St. Joseph facility and another hub in North Carolina. Products that move through the warehouse include greeting cards, gifts, party goods, dealer service kits and promotional items. Hallmark had spent over a year analysing several third-party logistics providers before selecting New Breed.