Stord takes over struggling e-commerce fulfillment business Pitney Bowes

Fulfillment services provider Stord today announced the acquisition of e-commerce fulfillment company Pitney Bowes, adding that the fulfillment center in Hebron, Kentucky, will expand its network of omni-channel commerce technologies.

The news comes just four weeks after Stamford, Connecticut-based Pitney Bowes announced that Gregg Zegras was retiring as president of its Global Ecommerce segment as part of an effort “to identify alternatives that can eliminate ongoing losses in this segment.” In May, the company announced the appointment of cost-cutting specialist Lance Rosenzweig as interim CEO, replacing Jason Dies in the same role.

The actions are part of a broader effort by Pitney Bowes to achieve an additional $60 million to $100 million in annual cost savings and implement improvements to its balance sheet and cash management to accelerate the paydown of high-cost debt, the company said.

The terms of the agreement were not disclosed.

With the ability to ship more than five million packages per year, the 640,000-square-foot Kentucky facility becomes the largest warehouse in the Stord network and includes significant climate-controlled storage space, a mezzanine for picking, pallet racking and robotic automation. It also provides additional coverage in the mid-country with a single hub and complements Stord’s headquarters in Atlanta, the company said.

According to Stord, the centre is continuing to invest in automation, installing robust transport systems, print-and-stick machines and robotic assembly arms to increase efficiency and speed of delivery for brands.

“This new facility is a powerhouse for existing customers and allows brands to quickly scale and meet consumer demand,” said Kyle VanGoethem, vice president of strategy and innovation at Stord, in a press release. “With 52 dock doors, 15,000 pallet locations and 136,000 cubic feet of container racking, Stord can serve omnichannel brands across any vertical—whether it’s consumer goods, health and beauty, or other high-volume DTC and B2B products.”

Today’s announcement follows Stord’s recent acquisition of ProPack Logistics and its expansion into Europe with newly launched centers in the U.K. and the Netherlands. The Kentucky facility joins 10 other fulfillment centers in North America, including Seattle, WA; Salt Lake City, UT; Nashville, TN; Vancouver, BC; Mississauga, ON; Atlanta, GA; North Haven, CT; Dallas, TX; Reno, NV; and Las Vegas, NV.