MONTGOMERY, NY-Staples Inc., has purchased the former Service Merchandise distribution plant in a deal approved earlier this week by the US Bankruptcy Court in Tennessee, which is overseeing the Service Merchandise reorganization. Staples closed on acquisition of the 765,895-sf plant that sits on 80 acres for $23.3 million on Sept. 28, according to officials with the Framingham, MA-based office supply retailer.

“The Montgomery fulfillment center will help us better deliver to our customers with more efficient, localized service,” says Joseph Doody, president of Staples Contract and Commercial. “We have enjoyed working with Sen. Schumer and the Empire State Development Group and hope to continue to build our relationship with the Montgomery community.”

New York State and Staples officials confirmed that the cost of the project, including land acquisition, machinery and retrofitting the existing building will be approximately $40 million. The Staples fulfillment center is expected to employ 450 New Yorkers within five years, including 300 new jobs by the end of 2001.

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