C&S Restructuring Biz, Planning Layoffs

Following reports of the impending closures of two Maryland distribution centers, C&S Wholesale Grocers has revealed a restructuring of its divisions that will lead to layoffs across the country.

The reorganization is in line with C&S' "long-term vision and commitment to optimizing operations," the Keene, N.H.-based company noted in a news release.

"As a family-owned company, we recognize the impact this restructuring will have on our employees and their families,” CEO Rick Cohen said in the release, as quoted by the Keene Sentinel. "Unfortunately, the reality of our industry is that we have to make changes, including the difficult decision to restructure some of our core functions and reduce our workforce, to ensure the competitive strength of C&S going forward."

The decision to restructure the business was based on A&P's bankruptcy and the subsequent auctioning off of its stores (currently 70 locations remain unsold, sparking uncertainty among their associates, shoppers and surrounding businesses), as well as "changes in consumer purchasing behaviors, and the channel shifting happening in the industry," according to the release. C&S was among the Montvale, N.J.-based grocer's largest creditors.

Last week, C&S division Collington Services LLC revealed it was closing two Safeway distribution centers in Maryland, a move that will affect as many as 700 employees.

C&S and Collington haven't revealed yet how many associates will actually lose their jobs, and C&S has declined to identify so far which divisions of its company will undergo restructuring.