Hudson Valley’s Largest Grocer Shutting Down; 304 Jobs to be Lost
A wholesale grocer employing 304 local Hudson Valley residents has announced that it will be closing in a few months.
Paperwork was filed with the state revealing that the Hudson Valley company would be shutting down in October of this year. Indications are that the closing is a direct result of changes instituted by the parent company of Stop & Shop.
C&S Wholesale Grocers says it will be shutting down its Newburgh facility starting on October 2. The grocery supply company has been responsible for the procurement, distribution and transportation of groceries to many local supermarkets throughout the Hudson Valley. The closing will result in the loss of 304 non-union jobs
The reason for the plant shut down is listed as "a result of a decision by one of their largest customers to move to a self-distribution model." Although paperwork filed with the state doesn't name the company, it appears that it is Ahold Delhaize, the corporation that runs both Hannaford and Stop & Shop supermarkets.
Winsight Grocery Business is reporting that Ahold Delhaize is moving to a self-managed supply chain, replacing services they have previously contracted out to C&S Wholesale Grocers in Newburgh. The company has launched a $480 million project to move its supermarkets to a self-distribution model by 2023. Hannaford Supermarkets was already utilizing the system, but after Ahold Delhaize's 2015 merger with Stop & Shop, the company is now flipping control of that brand's supply to a new distribution center they have reportedly already acquired from C&S Wholesale in Chester.
A representative with company confirmed the closure with us on Wednesday afternoon. The C&S Wholesale Grocers spokesperson says that they are still hiring and offering at least $8,000 in retention bonuses to workers who stay with them through October. The bonuses will likely lower as they get closer to the closing date.
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