By HALELUYA HADERO, AP Business Writer
NEW YORK (AP) — Amazon is closing a subsidiary that has been selling fabrics for nearly 30 years, the latest move by the online retail giant to cut costs.
In a notice posted on its website, fabric.com said it would no longer sell products and instead urged customers to buy from Amazon. Thursday is the last day that customers can place orders on the fabrics site.
“As part of our regular business planning, we are continuously evaluating the progress and potential of our offerings and have made the decision to close Fabric.com,” Amazon spokeswoman Betsy Harden said in a statement. prepare.
It is not known how many employees will be affected by the closure. Harden said Amazon will work with staff to help them “identify other opportunities” in the business, including nearby warehouses. Employees who don’t stay with Amazon will receive severance pay, she said.
News of the closure was first reported by the Craft Industry Alliance.
Georgia-based Fabric.com was founded in 1993 as Phoenix Textiles Group. She operated as a wholesale distributor of apparel fabrics for several years before launching her own website and beginning to sell items directly to consumers.
Amazon acquired the company in 2008. At the time, it said it would help the fabric site expand its selection of items and enable Amazon to offer customers more sewing and craft supplies. .
The company’s closure comes as Amazon tries to cut costs amid concerns about the wider economic environment and slow online sales. In recent months, it has shut down its hybrid virtual home care service Amazon Care, implemented a hiring freeze on the business side of its retail business and cut some of its other projects.
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