Arcade Beauty, a leading provider of solutions to the beauty industry, has made the strategic decision to consolidate its operations by closing its Chattanooga plant and consolidate production into its existing South Plainfield, NJ facilities, officials said.
The move comes as part of Arcade Beauty's ongoing efforts to streamline operations, achieve greater economies of scale, improve overall efficiency, and ensure long-term sustainability in an increasingly competitive market, it was stated.
The affected plant, located at 3800 Amnicola Highway, has been an integral part of Arcade Beauty's manufacturing operations over the last 50 years. However, after careful evaluation and analysis of market conditions particularly with secular declines in print media, production capacities, and operational costs, Arcade Beauty has determined that consolidating production into the South Plainfield facilities will better position the company for future growth and success, officials said.
"The plant closure will allow us to improve our asset utilization in North America and further reduce our fixed cost base," said Trevor Deighton, General Manager – North America. "We will work closely with our customers to seamlessly transition our supply chain to other Company sites in North America."
Approximately 80 positions will be eliminated as a result of these actions. The company is committed to providing support and assistance to affected employees during this transition period, including severance packages, job placement services, and retraining opportunities where applicable.
"The decision to close the plant was not made lightly and a direct result of the continued secular declines in print media," said Carl Allain, president and CEO. "We remain committed to doing what is right, treating everyone with respect, and delivering on our commitments to our people, customers, shareholders and the communities where we operate."
Officials said Arcade Beauty "remains dedicated to delivering high-quality products and maintaining strong relationships with its customers. The consolidation and closure of the plant are strategic measures aimed at reinforcing the company's market leadership position, maximizing value for its stakeholders, and ensuring a sustainable future."
Arcade Beauty is a leading provider of solutions to the beauty industry, including sampling and retail solutions. The company has a global footprint, with its 11 facilities servicing 400+ beauty brands worldwide. Arcade Beauty was formed in September 2014 via the merger of Arcade Marketing and Bioplan, two prominent sample packaging businesses based in New York and Paris, respectively.