Yankee Candle’s South Deerfield distribution facility to close by end of 2024

Yankee Candle’s distribution facility on Yankee Candle Way in South Deerfield.

Yankee Candle’s distribution facility on Yankee Candle Way in South Deerfield. STAFF FILE PHOTO/PAUL FRANZ

By CHRIS LARABEE

Staff Writer

Published: 01-10-2024 5:04 PM

SOUTH DEERFIELD — Newell Brands, the parent company of Yankee Candle, is planning to close its distribution facility in South Deerfield by the end of 2024.

In a statement, a spokesperson for Newell Brands said the company is focusing on consolidating its services and the move will occur later this year.

“As part of its supply chain consolidation and optimization efforts, Newell Brands, the parent company of Yankee Candle, announced that its distribution facility in South Deerfield, MA will relocate later this year to another company distribution center,” the spokesperson said, without mention of a location. “We thank our employees for their service and dedication. We are committed to supporting these employees through this time with comprehensive transition benefits and encourage them to apply for open positions at our other local facilities.”

A company spokesperson further clarified Wednesday afternoon that two of Yankee Candle’s three distribution sites in the region will remain in operation.

“While we are reducing our overall distribution operations in the area, we are only closing an auxiliary warehouse at 14 Industrial Drive, South Deerfield, and consolidating its operations to our South Deerfield Facility at 27 Yankee Candle Way,” the spokesperson said.

It was not immediately clear Tuesday whether there was a timeline for layoffs.

In a Securities and Exchange Commission (SEC) filing from Jan. 8, Newell Brands stated its board of directors approved an “organizational realignment” that will include “centralizing” numerous teams within the company, while also addressing its real estate portfolio. It also plans to “reduce its office roles by approximately 7%.”

“The company also plans to further optimize its real estate footprint and pursue other cost-reduction initiatives,” the filing states. “These actions are expected to be substantially implemented by the end of 2024.”

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In all, the company is expecting pre-tax savings in the range of $65 to $90 million.

The South Deerfield distribution center’s closure on Industrial Drive off of Route 116 follows the shuttering of Yankee Candle’s corporate offices in town in 2023 amid a restructuring and streamlining of Newell Brands’ operations, which was spurred by a “need to cut overhead expenses” by taking “decisive action with our real estate portfolio,” according to a letter published by then-Newell Brands CEO Ravi Saligram last year.

Employees working in the South Deerfield corporate offices were transferred to different facilities in South Deerfield and Whately.

Along with the corporate office closure, the company, which also owns the Sharpie and Rubbermaid brands among many other household name brands, cut roughly 13% of its employees last year.

“Yankee Candle was founded in the area and has a proud history,” the company said in its statement on Tuesday. “Newell will maintain a presence in the community with our flagship Yankee Candle Village store, manufacturing facility and research and development lab.”

   Chris Larabee can be reached at clarabee@recorder.com.