(South Hill, Va.) — Stage Stores, Inc. is closing its distribution center in South Hill, Virginia, in a move that will affect about 100 workers.

The Houston-based retailer announced the move Wednesday as part of a restructuring effort designed to increase efficiency. The warehouse is expected to close by January of next year.

The South Boston News and Record reports that the center is eliminating all workers at the local distribution facility, along with a small number of supervisory staff. The affected employees will receive severance packages.

The warehouse is one of four operated by Stage Stores. Its operations will be absorbed by distribution centers in Ohio, Texas and Nebraska. A company spokesman said it is unlikely that the other distribution centers will absorb workers who will be losing their jobs in South Hill.

The retail chain operates stores under the Peebles, Goody’s and Palais Royal names.