Amazon is shutting down its subsidiary Fabric.com, that’s been selling fabrics for nearly 30 years to cut costs. Fabric.com said it will no longer sell products and directed customers to shop on Amazon instead.
The closure of the business comes as Amazon is attempting to cut costs amid worries about the wider economic environment and sluggish online sales. The company 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.
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.” Amazon will be working with the firm’s staff to help them identify other opportunities at the company, including at nearby warehouses. Employees who do not stay with Amazon will be given severance.
Amazon acquired Fabric.com in 2008 to help the fabric site expand its selection of items and allow Amazon to offer its customers more sewing and crafting supplies. Georgia-based Fabric.com was founded under the name Phoenix Textiles Group. It operated as a wholesale distributor of apparel fabrics for several years before it launched its own website and began selling items directly to consumers.
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