IBJNews

Texas firm plans to move into Franklin distribution building

Back to TopCommentsE-mailPrintBookmark and Share

Johnson County economic development officials are thrilled that a company is moving into a Franklin distribution building just a month after Best Buy Co. vacated it.

About 220 Best Buy employees were left jobless by the closing. But Amarillo, Texas-based music wholesaler Anderson Merchandisers LP has confirmed to the Daily Journal in Franklin that the company expects to move into the 703,000-square-foot warehouse.

“It’s a great thing for Franklin,” said Cheryl Morphew, CEO of the Johnson County Development Corp. “And my hope is that since it’s the same kind of work that Best Buy was doing in that facility, this will be a nice backfill [for the jobs that were lost].”
 
It’s unclear, though, when the facility might reopen or how many workers Anderson Merchandising might employ there. Company spokesman Mike Cohen didn’t return phone calls from IBJ.

In a prepared statement to the Franklin newspaper, he said: “While still in the planning stages, we anticipate operating out of the Franklin facility once operated by Best Buy.”

County officials, however, have not been contacted by Anderson Merchandisers about its plans to establish operations in Franklin. No one from the company has contacted JCDC or the city of Franklin about pursuing tax incentives or work-force training grants, Morphew said.

“They’ve been very quiet, or so they thought,” she said, referring to online job postings from the company.

Best Buy had for months been trying to lease or sell its warehouse at 2001 Commerce Parkway. Built in 1994, the property was listed by commercial real estate brokerage Cassidy Turley for $15.4 million. Listing brokers didn’t return phone calls from IBJ, but Morphew said she thinks Anderson Merchandising purchased the building from Best Buy.

Anderson Merchandisers is the nation’s largest music wholesaler, supplying Wal-Mart, Sam’s Club, Best Buy and the Army and Air Force Exchange Service.

The distribution facility in Franklin should serve Anderson Merchandisers well following its deal to pick up New York-based Sony DADC Americas’ distribution agreements filled from a plant in Fishers.

Sony DADC announced Feb. 10 that it will start shutting down its Fishers distribution facility in May and lay off all 248 workers by September.

The distribution center handles compact discs for EMI Music, Universal Music and Sony Music. It's shutting down because of continuing economic challenges, a Sony spokeswoman said.

Compact disc sales have fallen dramatically in recent years as more consumers switched to digital downloads to listen to music. Industry experts say digital downloads—mostly purchased on iTunes—will outsell music CDs for the first time in 2012.

Sony DADC is a division of New York-based Sony Corporation of America, a subsidiary of Tokyo-based Sony Corp.

Falling sales of compact discs undoubtedly is hurting Best Buy as well.


The closing of its Franklin distribution center occurred sooner than expected. The Minneapolis-based appliance and electronics retailer had notified the Indiana Department of Workforce Development in May that it would shut down the facility by the end of March 2012.

The facility employed almost 1,000 people eight years ago. In 2004, Best Buy laid off 415 employees—nearly half the work force at the time.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Only half a million TV Viewers? And thats an increase? I knew Indycar was struggling but I didn't know it was that bad. Hell, if NASCAR hits 5 Million viewers everyone starts freaking out saying its going down hill. It has a long way to before Indycar even hits NASCAR's bad days.

  2. IU has been talking that line for years with no real progress even with the last Dean, Dr. Brater. Why will an outsider, Dr. Hess, make a difference? With no proof of additional resources (cash in the bank), and a concrete plan to move an academic model that has been outdated for decades with a faculty complacent with tenure and inertia, I can count on IU to remain the same during the tenure of Dr. Hess. One ought to look to Purdue and Notre Dame for change and innovation. It is just too bad that both of those schools do not have their own medical school. Competition might wake up IU. My guess is, that even with those additions to our State, IU will remain in its own little world squandering our State's tax dollars. Why would any donor want to contribute to IU with its track record? What is its strategy to deal with the physician shortage for our State? New leadership will not be enough for us to expect any change.

  3. How do you think the Bridges got approved? I spent a couple days researching PAC's and individual contributions to some city council members during that time. My printouts were inches thick on the two I concentrated on. Finally gave up. Was disgusted with all the donations, and who they were from. Would have taken me days and days to compile a complete list. Tried to give it to the Star reporter, but he thought it was all just fine. (and apparently he was treated well himself) He ended up being laid off or fired though. And then of course, there was land donated to the dad's club, or city, as a partial payoff. All done in the shining example of "charity." No, none of these contributions are a coincidence.

  4. I agree what kind of help or if any will be there for Dr. Ley's patients. I was a patient myself.

  5. What about the hundreds of patients who sought this doctor for the right reasons, to quit drugs. what option do these patients now have, experience horrible withdrawl or return to heroin?? those are the choices. what about the children of these former addicts who's parent(s) WILL not b able to maintain their job, for @ least 2 weeks.. There needs to b an emergency clinic opened for these patients.

ADVERTISEMENT