Fleming Companies, the Lewisville TX-based supermarket distributor, plans to close five unprofitable warehouses and lay off about 800 employees, or 6.8% of its work force, according to a Houston Chronicle newspaper report. The actions are designed to cut costs as the company attempts to emerge from bankruptcy.
About $1 billion in annual sales will be lost when facilities in Phoenix AZ, Salt Lake City UT, Warsaw NC, North East MD, and King of Prussia PA are closed, spokesman Shane Boyd said in the report. The company intends to work with supermarket customers to limit disruptions as they switch to other suppliers.
Fleming is leaving the regions because not enough potential exists to boost sales, according to Boyd.