American Eagle, Office Depot pull plug on third-party logistics services
Earlier this month, e-commerce logistics provider Stord acquired rival Shipwire from parent company Ceva Logistics to beef up its capabilities and distribution footprint. Brittin Ladd, a supply chain and e-commerce logistics consultant who spent three years at Amazon, said on LinkedIn that AEO tried to find a buyer for Quiet Logistics, but there was no interest.
Office Depot closing Veyer Logistics
Meanwhile, Veyer, the logistics spinoff of The Office Depot Corp. is ending its fulfillment operation for standalone logistics customers following last month’s $1 billion acquisition of Office Depot by Atlas Holdings, according to a message from Veyer’s business development team to a consulting agency that was viewed by FreightWaves.
“As part of the broader strategy work happening with Atlas’ acquisition of Veyer’s parent company, Veyer will be exiting the e-commerce fulfillment business. Because of that shift, the partnership program is being wound down and we won’t be able to move forward with any further collaboration,” the Veyer manager said. Many employees will lose their jobs because of the restructuring.
Veyer has 8 million square feet of warehouse space in 40 facilities nationwide.
ODP Corp. is folding Veyer into its Business Solutions subsidiary, which sells office supplies and other products in bulk to businesses, and is not shutting Veyer down, the company said in a statement provided to FreightWaves. “ODP customers were informed upon completion of the acquisition that, to prioritize efficiency, speed, and execution for its customers in this new chapter, the company would be realigned to focus on its two core businesses, ODP Business Solutions and Office Depot OfficeMax. As a result, Veyer is being integrated into ODP Business Solutions, where its logistics, distribution, and transportation capabilities most naturally support commercial customers and future growth.”
Management hinted in a news release announcing the deal that Veyer would be disbanded and stop providing logistics services to outside businesses.
“Today marks the start of an exciting new chapter for ODP as a private and infinitely more agile business. As my new coworkers and I begin this next phase together, we are refocusing on our two core businesses, Office Depot OfficeMax and ODP Business Solutions. With a refreshed strategy, commitment to our customers and Atlas behind us as our long-term partner, we’ll bring renewed focus and discipline to how we operate, support our people and drive sustainable, profitable growth on both sides of the business,” said new ODP Chief Executive Craig Gunckel.”
Chris Mortl, a senior account executive at Office Depot, confirmed on LinkedIn that rumors about Veyer’s closing were accurate, adding that he was willing to provide referrals to Veyer employees applying for new jobs.
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