HSN cuts distribution center, 350 jobs

ST. PETERSBURG -- A distribution center consolidation will allow HSN Inc. to trim 5% of its workforce, merging operations of a Virginia location with a center in Tennessee.

The St. Petersburg-based cable television retailer says it will close its distribution center in Roanoke and move that work to Piney Flats, Tenn. The 18-month plan to close will cost HSN 350 of its existing 6,900 jobs nationwide.

The Roanoke closure will leave just three distribution centers for the company -- Piney Flats; Fontana, Calif.; and Ronkonkoma, N.Y. Of those facilities, HSN owns the Piney Flats real estate, and leases space in California and New York.

HSN expects to pay between $4 million and $5 million to close the facility, a vast majority of that in employee-related expenses like retention incentives and severance, according to a filing with the U.S. Securities and Exchange Commission. About $3 million of that cost will hit this year's second quarter results.

HSN, which trades on the Nasdaq under the symbol HSNI, reported first quarter numbers last month. It reported a profit of $33.7 million, or 64 cents per share, on revenues of $841.9 million for the quarter ended March 31. That compares to a profit of $24.2 million, or 45 cents per share, the year before on revenues of $777.4 million.

The company released the news about the Roanoke closure after the markets closed Tuesday. Shares for HSN ended the day at $68.56, up slightly from the day before in below-average trading. Shares for HSN have peaked at $79.80 this year.