Washington could soon lose another employer as Republic National Distributing Company prepares to shut down facilities across the state, affecting hundreds of workers and adding to growing concerns about companies pulling operations out of the state.
Republic National Distributing Company, known as RNDC, filed a WARN notice announcing plans to close operations in Auburn, Everett, Seattle, and Spokane. The closures impact 267 workers statewide.
According to the filing, RNDC is restructuring parts of its business and exploring sales of certain operations.
“The company has been exploring various strategic alternatives, including potential sale transactions involving certain of the company’s markets and operations,” the WARN notice states.
The layoffs include 166 workers in Auburn, 15 in Everett, 28 in Seattle, 30 in Spokane, and another 28 remote employees tied to Washington operations. Employees are expected to lose their jobs on or shortly after July 17.
The move comes as Washington businesses increasingly warn about rising costs, taxes, regulations, and a deteriorating business climate.
RNDC, once the nation’s second-largest wine and spirits distributor, has struggled financially in recent years. Industry reports say the company lost a major distribution partnership with Sazerac after allegedly defaulting on tens of millions of dollars in invoices.
Now, large portions of its operations appear headed elsewhere. Multiple reports indicate RNDC plans to sell its Washington and Oregon markets to Columbia Distributing, while Reyes Beverage Group is acquiring other RNDC operations nationwide.
The pullback follows a growing pattern of companies reducing or shifting operations outside Washington. Starbucks recently announced a $100 million expansion in Nashville, where it plans to move or hire 2,000 workers over the next five years while simultaneously consolidating office space, cutting jobs, and closing stores in Seattle.
Seattle-area spa company Soak & Sage also announced a major Nashville expansion rather than growing in Washington. Aerospace supplier Janicki Industries warned it is pursuing future expansion in Utah, Idaho, and Montana because Washington’s “ever-increasing regulations” are slowing local growth.
Tacoma manufacturer Delta Camshaft announced it is relocating to Arizona after 48 years in Washington, with owner Jon Bodwell citing “crime, graffiti, taxes & fees.”
Even Starbucks founder Howard Schultz recently warned in a Wall Street Journal op-ed that Seattle leaders increasingly treat business as “the adversary of the public good.” Meanwhile, downtown Seattle office vacancy rates have climbed above 35 percent as Amazon, Microsoft, Meta, and other major employers reduce headcount and shrink office footprints.
An Association of Washington Business survey released earlier this year found nearly four in ten employers were planning expansion outside Washington instead of inside the state.
“We are already seeing evidence of employers moving operations or moving their personal residence to other states,” said AWB President Kris Johnson.
Washington Democrats continue arguing that the state remains economically strong and there is no capital flight.
