Titan Machinery is closing seven construction dealership stores, the company said. The West Fargo, N.D.-based dealership said the closures and layoffs of more than 100 employees were necessary because of the “slow recovery” in the construction economy, in order to position the company for future growth. Titan reported weaker year-over-year results in the fourth quarter of fiscal 2014, although its full-year results showed increases in revenue and profits.
Titan is closing stores in Bozeman, Big Sky and Helena, Mont.; Cheyenne, Wyo.; Clear Lake, Iowa; Flagstaff, Ariz.; and Rosemount, Minn. Titan is also consolidating an agricultural store in Oskaloosa, Iowa, into an existing Titan agriculture dealership.
The layoff of 128 employees represents 4.5 percent of Titan’s workforce.
“We have to make tough decisions that support our customers’ business needs, manage company expenses, match the changing business climate, operate efficiently, and position ourselves for long-term growth to best serve our customers,” said CEO David Meyer.
Titan Machinery will continue to own and operate 96 construction and agriculture stores in 11 states. The company said sales, rental and services offered to customers of the closed stores will be consolidated to the Titan Machinery store nearest to them. Titan will also have staff reductions at other dealerships and reductions in support staff at its Shared Resource Center.
Titan Machinery also has a significant equipment rental division and is ranked No. 36 on the RER 100.