ThredUp, an online clothing reseller founded in Cambridge before it moved to the West Coast, plans to close its distribution center in Vernon Hills, Illinois, and lay off more than 200 employees.
The company said the facility’s lease expired and it decided to move the operations to “more scalable and cost-efficient” facilities in Mechanicsburg, Pennsylvania; Suwanee, Georgia; and Phoenix, Arizona, the Chicago Tribune reported Tuesday.
“Moving forward, we’ll continue to invest in and open distribution centers that have the footprint to best support thredUP’s growth,” ThredUp said in an emailed statement.
The layoffs take effect March 19, according to the Chicago Tribune.
ThredUp said it is offering severance to workers or relocation support to those interested in moving to one of its other distribution centers. The company is also offering job placement assistance, conducting resume workshops and bringing in employers with job openings to conduct interviews with ThredUp workers.
ThredUp opened the 145,000-square-foot facility in Vernon Hills in 2016, with 145 employees initially, according to the Chicago Tribune. The company said its location would help it provide faster service and local inventory for customers in the Midwest.
ThredUp reported that its sales slowed during the pandemic last year but were still up 20% between March and May from the year-earlier period. The company has declined to comment on more recent financial results because it is in a quiet period after announcing in October it confidentially filed for an initial public offering.
