Why This Matters to Distributors: Essendant is cutting at least 1,175 jobs across five states, including 644 in Illinois, as the national wholesaler sharply reduces operations while pursuing potential sales and additional capital to avoid liquidation.
Essendant is eliminating at least 1,175 jobs across Illinois, Pennsylvania, Georgia, Texas, and Arizona, significantly expanding a restructuring that is now hitting several markets the wholesaler previously identified as central to its streamlined national distribution network.
Distribution Strategy Group has reached out to Essendant for comment on the layoffs, the status of its operations and its plans for the business but has yet to receive a response.
New Illinois Worker Adjustment and Retraining Notification Act records show Essendant plans to eliminate 644 jobs in the state — 510 at its Lincolnshire operation and 134 at its Carol Stream facility. Both actions were reported to Illinois officials Aug. 3, with the first layoffs scheduled for Oct. 3.
The Illinois cuts come on top of 531 previously disclosed layoffs in Pennsylvania, Georgia, Texas, and Arizona, bringing the number of employees affected by the latest WARN actions to at least 1,175 across five states.
The scope of the cuts represents another sharp contraction for Essendant, a national wholesale distributor that has spent the past year reducing its distribution footprint and exiting much of the traditional office products business.
The Illinois actions are particularly significant because Lincolnshire is home to Essendant’s corporate headquarters and the Chicago area was one of six markets the company identified last year as the foundation of its redesigned national distribution network.
Essendant said that network would be centered on distribution hubs in Dallas; Atlanta; Chicago; Oaks, Pennsylvania; Phoenix; and Sacramento, California. The company said the network encompassed more than 2 million square feet and was designed to provide one- to two-day delivery to more than 98% of U.S. customers.
The latest WARN actions affect operations in four of those six markets: Chicago, Dallas, Atlanta, and the Philadelphia-area market served by Oaks.
Illinois Cuts 644 Jobs
The Illinois Department of Commerce and Economic Opportunity lists two Essendant WARN actions reported Aug. 3.
Essendant plans to eliminate 510 jobs at 200 Tri-State Drive, Suite 400, in Lincolnshire, with the first layoffs scheduled for Oct. 3.
A second action covers 134 employees at 230 Lies Road E. in Carol Stream, also beginning Oct. 3.
The state classifies Essendant as a wholesale trade employer and identifies both actions as covered by WARN.
The latest Illinois cuts follow an earlier Essendant WARN action in the state. In November 2025, the company reported 44 affected employees at its Greenville operation, with layoffs beginning Jan. 19, 2026.
Layoffs Spread Across Five States
The Illinois actions bring the latest round of confirmed Essendant layoffs across the five states to at least 1,175:
- Illinois: 644 employees
- Georgia: 192
- Pennsylvania: 150
- Texas: 136
- Arizona: 53
In Georgia, Essendant is permanently closing its operation at 125 Horizon Drive in Suwanee, affecting 192 employees. The action was reported Aug. 4, with layoffs scheduled to begin Oct. 3.
In Pennsylvania, Essendant Management Services LLC plans to close its operation at 125 Green Tree Road in the Phoenixville area, affecting 150 employees. The layoffs are scheduled for Oct. 3.
In Texas, Essendant reported 136 affected employees at its Irving operation in Dallas County, with layoffs scheduled for Oct. 3.
In Arizona, a WARN action covers 53 employees at Essendant’s facility at 1500 S. 71st Ave. in Phoenix.
Essendant Warns of Possible Liquidation
The Pennsylvania WARN notice provides the clearest indication yet of the financial pressure behind Essendant’s restructuring.
Essendant said in the notice that it has been exploring strategic alternatives, including potential sale transactions, while attempting to secure additional capital to avoid liquidation.
If those efforts are unsuccessful, the company said it currently expects to cease operations and close the business.
The language stops short of saying liquidation is certain. Essendant instead identifies a shutdown as a potential outcome if it cannot complete a transaction or obtain additional capital.
The Illinois state WARN database confirms the number of employees affected, locations and timing of the two Illinois actions, but it does not include Essendant’s underlying WARN letters. As a result, it is not known whether the Illinois notices contain the same language about potential sales, additional capital, and liquidation as the Pennsylvania filing.
Cuts Hit Essendant’s Redesigned Network
The latest actions come less than a year after Essendant unveiled a major restructuring intended to reposition the company around a smaller national distribution network.
In 2025, Essendant said it was exiting the independent office products dealer channel and concentrated on janitorial and sanitation, foodservice and technology products.
The company described its strategy as a “New Way Forward,” centered on six distribution hubs and a more concentrated network designed to improve inventory availability, delivery speed, and operating efficiency.
Essendant also announced a managed transportation partnership with Hub Group and expanded its parcel delivery relationship with UPS. The company said the redesigned network would provide one- to two-day delivery to more than 98% of U.S. customers.
At the time, Essendant characterized the restructuring as a strategy for long-term growth and told customers it was “here to stay.”
The latest WARN actions now affect four markets that were part of that redesigned network.
Essendant’s website remains active and continues to market the company as a wholesale distributor focused on janitorial and sanitation, foodservice and technology products.
But the latest WARN filings show the restructuring has become broader. At least 1,175 employees are now affected across five states, including 644 in Essendant’s home state of Illinois, while the company’s Pennsylvania filing says it is pursuing potential sales and additional capital to avoid liquidation.
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