Levi Strauss & Co. has announced its intent to close its distribution centre in Little Rock, Ark., before the end of 2006. The closure would eliminate the jobs of approximately 340 workers, more than a quarter of whom may be eligible for early retirement under company policy.

"Our distribution network is over capacity and has been for some time," said Phil Marineau, chief executive officer. "We believe it is imperative that we close the Little Rock facility and consolidate the work in our remaining distribution centres .

The company hopes to begin negotiations with the relevant union soon so that separation packages, transition support services and other benefits can be determined.