New York-based Sony DADC Americas will start shutting down its Fishers distribution facility in May and lay off all 248 workers by September, the company said Friday morning.
Company spokeswoman Lisa Gephardt said employees were notified of the plans on Wednesday.
The distribution center handles compact discs for EMI Music, Universal Music and Sony Music, but it’s shutting down because of continuing economic challenges, Gephardt said.
Compact disc sales have fallen dramatically in recent years while 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.
“I think everyone’s pretty-well aware of what’s happening with the CD business,” Gephardt said.
Gephardt said Sony DADC currently leases the 637,531-square-foot distribution center, located at 9999 E. 121st St.
It was previously operated by EDCI Holdings, which in November 2008 announced that it would sell supply agreements and equipment to Sony for $26 million. The sale included equipment in the Fishers facility.
An Amarillo, Texas-based distribution firm, Anderson Merchandisers LP, will pick up Sony DADC's distribution agreements and service them from a distribution center in Franklin. An official with Anderson declined to discuss the new contracts.
Sony DADC is a division of New York-based Sony Corporation of America, a subsidiary of Tokyo-based Sony Corp.