Transcontinental to consolidate direct mail facilities

Share this content:

Feeling the impact of the turmoil in the financial marketplace, Transcontinental Inc. said that its US direct mail subsidiary will consolidate production from its Warminster, PA, facility to a facility in Hamburg, PA. As a result, 460 positions are being eliminated in Warminster.

“Following an extensive capacity review of our US direct mail operations, Transcontinental has acted to quickly address the negative impact of current market conditions, while continuing to meet the needs of our customers and giving us the flexibility we need over the long term,” said François Olivier, president and CEO at Transcontinental, in a statement.

Financial institutions represent a large portion of Transcontinental's direct mail customers in the US. The company is adjusting capacity to meet lower demand levels as financial institutions reduce the amount of direct mail they use because of how difficult it has become for consumers to get credit. Once the consolidation is complete in January, Transcontinental will have a production capacity of 3.5 billion direct mail pieces per year. Transcontinental Direct USA Inc. represents approximately 10% of the corporation's consolidated revenues.

As a result of a recent goodwill impairment test for its US direct mail business, Transcontinental will completely write off the goodwill associated with this business in the fourth quarter. The impairment amounts to approximately $195 million.

close

Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above