Food service distributor Performance Food Group said that two of its distribution centres, in Houma, Louisiana and Magee, Mississippi, have been affected by hurricane Katrina
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While both facilities experienced temporary disruption of power and some moderate inventory loss, both facilities are now operating and serving their customers to the extent possible, the company said.
At the present time, the efforts of the Federal Emergency Management Agency are requiring utilization of a significant portion of capacity in the Magee, Mississippi facility. It is possible that FEMA may require greater utilization of this or other facilities in support of relief efforts, for which the company expects to be compensated in accordance with applicable federal guidelines, it said
“Our primary concern is for our associates, customers and communities that have been impacted by the hurricane,” said Bob Sledd, chairman and CEO. “We are working with FEMA in support of the on-going relief effort in the affected regions. We are working diligently to serve those in need while servicing our customers and assessing the longer term impact on our business.”
The Houma and Magee facilities generate approximately $260m in annualized sales, the majority of which is comprised of sales to multi-unit customers in a broad geographic territory including Louisiana, Mississippi, Alabama, Florida, Tennessee, Arkansas and eastern Texas. While a portion of this territory was more significantly impacted, the company is continuing to assess both the short and longer term impact of the storm on its overall customer base, its operations, including transportation costs and logistics, as well as any related insurance implications.
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By GlobalData
