Beleaguered US food distributor Fleming has said it will discontinue operations of five of its wholesale divisions, which account for around US$1bn in annual revenue, by mid-June.
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A spokesman for the company, which filed for bankruptcy protection at the beginning of April, said the closures would results in the elimination of 800 jobs, which is around 7% of Fleming’s workforce, reported Dow Jones News Service.
The spokesman declined to give details of the amount or timing of any associated charges, or of cost savings resulting from the closures. He said that none of the five facilities are currently profitable and they do not show potential for future growth.
Fleming said the closures will include a general merchandise distribution centre in King of Prussia, Pennsylvania, and grocery wholesale divisions in Phoenix, Salt Lake City, Warsaw N.C. and Northeast Md. The company is also reviewing its options regarding its Minneapolis division.
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