BlueSky Brands / AB&C Group Closes Their Doors
Last week was a tense one for several of our clients, and for our folks here, as we worked to move two of BlueSky’s fulfillment clients to new facilities before BlueSky Brands / AB&C Group this past Friday. We were successful before the doors were shuttered Friday evening. (For more info see Multichannel Merchant Magazine’s article)
This is particularly sad for the industry in a number of ways. First, for the employees of BlueSky Brands, whose employees haven’t been paid in three weeks. Now that the State of West Virginia and BlueSky’s bank have jumped in, it’s questionable how the employees will come out. Paragon and National Wildlife staffs were let go the week prior.
Second, it’s sad for the clients that are still trapped there. I’m sure that if they don’t generate sales for a couple of weeks this will have huge ramifications on continuing their merchandise operations. If there are any other BlueSky clients out there seeking help and reading this blog, call us and let us help you cut to the chase to find a new 3rd party provider QUICKLY.
Third, is the effect on the 3rd party fulfillment industry itself. We do a lot of work in outsourcing call center and fulfillment for clients. This is an industry that seems to periodically self-destruct. We know of two major providers that have pushed our clients out because of a change of business direction. Another major fulfillment house had a poor performance in 4Q last year and couldn’t fill orders on time for at least three major direct businesses. Don’t get me wrong, there is a place for 3rd party fulfillment, especially for smaller businesses or where fulfillment is not a core competency. It lets management concentrate on marketing and merchandising. We have had several clients using 3rd party fulfillment for 20 years.
Fourth, up until last spring we worked with BlueSky Brands to get the Martinsburg facility operational. We are sorry to see them stumble and fall. It’s a good facility, ideal for a large direct business, and great for a multi-coast business serving the east and midwest.
There are better days ahead for the 3rd party fulfillment industry. There are a number of good 3rd party companies in which we have confidence. Give us a call.
Curt Barry
Curt Barry is president of F. Curtis Barry & Company, a multichannel operations and fulfillment consulting firm with expertise in multichannel systems, warehouse, call center, inventory, and benchmarking; Learn more online at: http://www.fcbco.com.
Curt, the situation with Blue Sky Brands and AB&C is very sad, and we agree that it is bad news for clients and for the third-party fulfillment “industry.” The fact that the catalog titles owned by Blue Sky and AB&C were intextricably intertwined financially, obviously, complicated matters.
Our full-service, third-party distribution center, BoxInBoxOut of Charlottesville VA, has some space available that might suit AB&C clients who need to relocate. As former executives of Plow & Hearth, we know the importance of reliable service, and we offer that at BoxInBoxOut. Our website, www.boxinboxout.com, gives more detail. The contact is Tom
Freshwater- 434-220-8924 and tfreshwater@boxinboxout.