Apple Will Close Its First Unionized Retail Location in the US

Apple Inc. (AAPL) is closing its retail store in Towson, Maryland — a location that drew national attention in recent years as the center of a rare unionization effort by the iPhone maker’s employees.

The company said Thursday that the store, located at Towson Town Center mall, will permanently shut down in June and will not be replaced. Apple said in a statement that the closure is due to the “departure of several retailers and declining conditions” at the mall and called it a “difficult decision.”

Employees were informed of the move on Thursday morning, when Apple closed the store to customers and held a meeting with staff, managers and human resources representatives. Apple is also shuttering stores in June at Trumbull Mall in Connecticut and the North County Mall near San Diego.

Though several retailers — including Crate & Barrel and Banana Republic — have recently left the Towson mall, many employees said they were blindsided and believed the store’s unionized status offered some protection.

Apple said that “Towson employees will be eligible to apply for open roles at Apple in accordance with the collective bargaining agreement.” Unlike workers at the other two stores slated to close in June, however, Towson employees aren’t being offered transfers to nearby locations.

“As we continue investing to expand and enhance our retail stores and offerings worldwide, we remain deliberate about evaluating our existing locations to ensure that we can meet our customers’ needs in the best way,” the company added in the statement.

The International Association of Machinists and Aerospace Workers, which represents Towson employees, called the decision union busting.

“Apple’s claim that the collective bargaining agreement prevents relocation is simply false and raises serious concerns that this closure is a cynical attempt to bust the union,” a union representative said in a statement.

The union added that it is “exploring all legal options and will work with elected officials and allies to hold Apple accountable.” The company’s other unionized location in the US, a store in Oklahoma City, remains operational.

Apple rarely closes retail stores, though it occasionally shutters locations near larger nearby outlets, replaces stores with new ones in adjacent areas, or exits sites altogether because of declining foot traffic or other factors. Last year, the company closed a store in China for the first time.