American Eagle Outfitters and Office Depot are shutting down their logistics businesses serving outside customers, questioning the viability of the supply chain-as-a-service model. AEO acquired Quiet Logistics in 2021 to enhance delivery times and reduce store inventories, but is now focusing on its own volume due to challenges in managing third-party brands.

After rumors of Quiet Logistics’ exit spread on social media, American Eagle Outfitters confirmed the closure of its Quiet Logistics business to prioritize growth. Customers like Perfect Moment and Baggu will need to find new providers. The decision reflects AEO’s shift towards concentrating on its core retail business.

E-commerce logistics provider Stord acquired Shipwire to enhance its capabilities. Meanwhile, Veyer, the logistics spinoff of Office Depot, is ending its fulfillment operation for standalone customers following its acquisition by Atlas Holdings. Veyer will exit the e-commerce fulfillment business, with many employees losing their jobs due to restructuring.

Office Depot is integrating Veyer into its Business Solutions subsidiary, focusing on core businesses. Veyer’s logistics services to outside businesses will cease as part of the restructuring. New ODP Chief Executive Craig Gunckel emphasizes renewed focus, discipline, and profitable growth for the company.

Rumors about Veyer’s closure were confirmed by an Office Depot executive, with referrals offered to employees seeking new jobs. The decision reflects a strategic shift following the acquisition by Atlas Holdings. The move aims to prioritize efficiency, speed, and execution for customers in the new chapter of the business.

Read more at Yahoo Finance: American Eagle, Office Depot pull plug on third-party logistics services