C&S Considering Layoffs At A&P Depots

A C&S Wholesale Grocers subsidiary, Woodbridge Logistics, filed a notice with the New Jersey Labor Department last month that  it could lay off as many as  of 1,114 associates who are employed at six Garden State distribution centers that the Keene, NH wholesaler utilizes to supply A&P stores, effective February 6, a day after its seven year contract with Teamster Local 863  expires. The layoffs would take place at all at depots in New Brunswick, North Brunswick, Dayton and three locations in Woodbridge.

C&S (Woodbridge Logistics) is reportedly seeking substantial savings in its negoatiations, both in wages and benefits. The large, privately-held wholesaler is also undoubtedly protecting iteslef against the declining A&P sales and whatever other losses may occur as the Tea Company begins the long and complex task of reorganization.

When it sought Chapter 11 status on December 12, A&P partially attributed its bankruptcy filing to an inability to renegotiate terms of its contract with C&S, its primary supplier. Although C&S did not appear in the initial filing of largest unsecured creditors, an amended filing stated that the wholesaler was owed $10.7 million by A&P. The retailer reportedly receives about 70 percent of its goods from C&S or its subsidiaries.

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And according to published reports, A&P informed the court that vendors with long term contracts are not part of the debtors’ proposed (reorganization) program, adding that it will enforce its rights in court if such vendors use the Chapter 11 filings or the debtor’s financial condition as an excuse to suspend shipments, modify payment terms or otherwise impair its rights.