Essendant to close Suwanee distribution center, eliminating 192 jobs

SUWANEE — Wholesale distributor Essendant will permanently close its Suwanee operation this fall, eliminating 192 jobs in one of North Gwinnett’s largest recently disclosed employment losses.

The company notified Georgia officials Aug. 4 that its facility at 125 Horizon Drive would close, with the layoffs scheduled for Oct. 3. The filing appears on Georgia’s public WARN notice system, which tracks major layoffs and plant closings reported to the Technical College System of Georgia.

The public notice does not provide a breakdown of job titles, wages or individual separation packages. Distribution centers of this type typically employ warehouse workers, forklift operators, supervisors, drivers and administrative staff, but Essendant has not publicly specified which positions are included in the Suwanee total.

The closure is part of a much larger retreat by the Illinois-based company, which distributes office, janitorial, food-service and technology products to resellers.

Essendant is cutting at least 1,100 positions across several states while exploring asset sales and trying to obtain additional capital, according to Modern Distribution Management, a trade publication covering wholesale distribution. The company has warned that those efforts may not succeed and that it could ultimately cease operating.

Other October closures include operations in Pennsylvania and Texas. Hundreds of corporate and warehouse positions are also being eliminated in Illinois.

The Suwanee closing, however, is no longer contingent on whether the larger company finds a buyer or new financing. The Georgia notice describes the local shutdown as permanent.

A difficult time for warehouse workers

For affected employees, the regional job market presents a mixed picture.

Georgia’s unemployment rate remained relatively low at 3.4% in June, but transportation, warehousing and utility employers shed 5,300 jobs statewide over the previous 12 months, according to the Georgia Department of Labor’s latest detailed report.

That decline does not mean warehouse work has disappeared from the I-85 corridor. Distribution, manufacturing and delivery employers continue to recruit across Gwinnett and neighboring Jackson County. It does mean 192 Essendant employees may be competing for work in a sector that is no longer expanding as quickly as it did during the pandemic-era logistics boom.

Healthcare remains Georgia’s strongest employment sector, adding 23,500 jobs over the same 12-month period. Moving from distribution into healthcare support, industrial maintenance or advanced manufacturing, however, may require training or a new credential rather than a simple transfer of existing experience.

Workers do not have to wait until October to seek help

A WARN notice is intended to give employees time to prepare before a mass layoff. It is not a promise of severance pay or continued benefits.

Georgia’s Rapid Response program can connect affected workers with job-search assistance, training information and other reemployment services. The state program can be reached at 404-982-7970 or RapidResponse@worksourcega.org.

The nearest WorkSource Atlanta Regional center is on Crestwood Parkway in Duluth. Its Gwinnett Career Resource Center is open Monday through Friday from 8 a.m. to 5 p.m. and can be reached at 678-268-6610.

Services include résumé preparation, career assessments, interview assistance, job-search support and help locating approved education or certificate programs. Workers can begin using those services before their final day at Essendant.

There is an important limitation. WorkSource Atlanta Regional has placed new applicants for training and supportive-service funding on a waiting list because demand exceeds available money. Career counseling and job-search services remain available, but workers should not enroll in a paid program expecting reimbursement without first receiving approval. The agency explains the restriction on its training-funds notice page.

When to file for unemployment

Employees who remain on Essendant’s payroll until Oct. 3 generally would not file a regular unemployment claim solely because they received advance notice. They may seek assistance sooner if their hours are cut or their employment ends before that date.

The Georgia Department of Labor says unemployment claims take effect when they are filed and are not retroactive to a worker’s last day on the job. Eligible employees should therefore file promptly after their separation through the state’s unemployment-assistance portal.

Applicants should keep their separation letter, employment dates, employer information and recent wage records. The state says an initial payment may take at least 21 days, particularly when the reason for separation requires review.

Most claimants must also register with WorkSource Georgia and document at least three new employer contacts each week. Unemployment insurance provides temporary income, not automatic replacement of a worker’s former salary, and eligibility depends on prior wages and the circumstances of the separation.

For Suwanee and the surrounding North Gwinnett economy, the loss extends beyond 192 paychecks. A distribution center supports spending at nearby restaurants, gas stations and service businesses, while its closure leaves a sizable industrial property without its current tenant.

The more immediate concern is the group of employees approaching Oct. 3. The notice gives them several weeks to update résumés, gather employment records and begin contacting other employers. With nearly 200 workers leaving one workplace at the same time, starting early may matter.

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