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Amazon shuts online store fabric.com in cost cutting move

By Nagasunder in Amazon News, posted October 24, 2022

Amazon is closing a subsidiary that has sold fabrics for nearly 30 years in another cost-cutting move.

Fabric.com announced on its website that it will no longer sell products and directed customers to Amazon instead.

Customers could no longer place orders on the fabric website after Thursday, October 20, Thursday.

Amazon spokesperson Betsy Harden said: “As part of our regular business planning, we continually evaluate the progress and potential of our offerings and have made the decision to close Fabric.com,”

The number of employees affected by the closure is unknown.

Amazon, according to Harden, will work with employees to help them "identify other opportunities" at the company, including at nearby warehouses.

Employees who leave Amazon will be given severance pay, she said.

Georgia based Fabric.com was established in 1993 as Phoenix Textiles Group.

For several years, it was a wholesale distributor of clothing fabrics before launching its own website and selling directly to consumers.

Amazon bought the company in 2008 and said at the time it would help it expand its selection of items and allow Amazon to offer more sewing and crafting supplies to its customers.

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The closure comes as Amazon tries to cut costs amid concerns about the wider economic environment and sluggish online sales.

It has recently closed its hybrid virtual, in-home care service Amazon Care, implemented a hiring freeze on the corporate side of its retail business, and axed some of its other projects.

Source: ABCNews

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