Titan Machinery, Inc., which is headquartered in West Fargo, N.D. announced this past Thursday a restructuring plan to “address increasing complexity and scale of customer operations and machine solutions and to gain efficiencies across its footprint.”
What that means is the closure of 15 of its stores, including the site located in Redwood Falls.
“As we built one of the largest equipment dealership networks in North America, we made a number of acquisitions, including smaller ones, in close proximity to other locations in our network,” said David Meyer, Titan Machinery’s chairman and CEO in a press release announcement last week. “Although it’s a difficult decision to close a Titan location, by consolidating these adjacent locations, we will be able to achieve increased scale and efficiency to support our customers in those markets.
“We are committed to and focused on retaining the majority of our customers and many specialty trained employees from locations that will be consolidated. “Employees displaced by the restructuring plan will be offered positions in nearby locations where possible or will be offered severance benefits. The company is committed to transparency and to treating employees affected by the restructuring plan with respect and fairness. In addition to location consolidation, we have reorganized our operating structure to increase our operating efficiency and provide additional focus on parts and service support.”
The building site housing Titan Machinery in Redwood Falls is owned by Sterling Properties, LLLP, which entered into a tax abatement agreement with the City of Redwood Falls for that property. T
he new Titan operation officially opened in Redwood Falls in 2012, and, according to an article in a November 2012 edition of the Redwood Gazette, it had 22 employees.
According to Jeff Bowman, Titan chief marketing officer, the stores that are closing will remain open through the end of March to ensure service as farmers begin preparing for a new season.
After the closing, clients will be directed to receive support from the Marshall and Pipestone stores based on proximity to their operations.