More than 80 workers at the Magnolia offices and distribution center in Kent were informed Feb. 12 that their jobs are the latest victims of the lagging economy and corporate restructuring.
Best Buy, which owns the Magnolia electronics brand, announced that 82 positions in Kent were being eliminated starting this month. In addition, seven Magnolia stores are slated for closure by the end of this month, affecting an additional 100 jobs.
According to an e-mail from Susan Busch, corporate public relations director for Best Buy, located in Richfield, Minn., the restructuring is necessary to bring Magnolia’s expenses in line with “lagging home-theater sales.”
While the Kent office is closing, Busch wrote that a restructuring in Minnesota may create opportunities for former Magnolia employees willing to move.
According to Busch, Best Buy also remains committed to the Magnolia brand, which it purchased in 2000. Since then, Best Buy has opened 350 stores-within-a-store in best Buy locations, which the company said would remain open.
According to the e-mail, affected employees will be paid through March ad will received “enhanced severance packages” of severance pay plus one year of Best Buy-paid COBRA health and dental benefits, as well as one year of life insurance and outplacement assistance.
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