Copenhagen, Denmark-based Scandinavian Tobacco Group, a manufacturer of cigars and traditional pipe tobacco, acquired Tampa, Florida-based Thompson Cigars, a 104-year-old mail-order tobacconist, in 2018 for $62 million and has decided to restructure operations.
According to a company spokesperson, there is a plan to close the New York outlet store and consolidate their online and mail-order activities in the Cigars International facility located Bethlehem, Pennsylvania. The layoffs will commence in late June 2019. This will result in a layoff of 112 employees who are not eligible to transfer to the new location.
At the time of acquisition, the company noted, “Thompson provides Scandinavian Tobacco Group access to a substantial and attractive customer base, auction and retail websites as well as a retail store and a call center facility in Tampa” After the acquisition closed, employees were informed that operations would transitioned to Pennsylvania and that “significant cost synergies will benefit of customers and shareholders.
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