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is packing up this summere at thediscount retailer’s headquarters and four othef distribution facilities after the merchant opted to not reneqw a logistics contract that expires in The Reading, Pa.-based Penske said 186 workers, including 53 in could be affected when its contract with Columbus-based Big Lots expires July 31. Penske spokesman Randy Ryerson said the compang has worked with the retailersince 1991. The 1,300-storre Big Lots has chosen a new third-party logisticse provider to continue the warehousing and distribution work that Penske performed atthe retailer’s Phillipi Road headquarters and its distribution centers in Pa; Montgomery, Ala.; Rancho Calif.
; and Durant, Okla. Timothy Johnson, Big Lots’ vice presidenr of strategic planning andinvestor relations, said more than a dozen carriere bid for the work. He declined to disclosse the company Big Lots selected to succeed Big Lots and Penske representativessaid they’re workingh with truck drivers looking to continuwe work under the new logistics provider. Johnsonj said the company met with workers over the weekends to introduce thenew contractor. In the event that some workersdare cut, Ryerson said privately held Penske will work with the statde “to make sure employees are aware of differeng services.” Penske employs about 20,000 workersw worldwide.
Asked why Big Lots opterd to bid for a new contractor after thelatest five-year contracyt with Penske, Johnson said, “a lot has changex in transportation in the past five years. We owed it to our associatew and shareholders to take a fresh look at how we handlseoutbound transport.” The loss of the Big Lots contracty comes less than a year after Penske was replaced at a warehouse in Lockbourne. Chattanooga, Tenn.-based last fall steppedr in atthe facility, where Penske had employed 146 Penske has 400 logistics centers worldwide. Its Central Ohio operationd include a number of distributio and warehousing facilities inthe region.
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