C&S Subsidiary to Close DCs, Lay Off Workers

Collington Services LLC, a Washington, D.C.-area subsidiary of distributor C&S Wholesale Grocers, will close two Maryland distribution centers serving Safeway, a move affecting up to 700 employees, according to published reports.

The DCs, a grocery facility in Upper Marlboro and a general merchandise facility in Landover, have been operated by Collington since 2000. The closures are expected to occur gradually by next year, the Washington Business Journal reported, citing a company spokesman. The spokesman added that not all 700 affected workers will lose their jobs, as they'll be able to apply for jobs at other C&S centers in Maryland and Pennsylvania.

The Journal suggested that the closures were attributable to consolidation in the industry, which "stemmed from changes in grocery sales, increased spending for prepared meals and nontraditional retailers gaining prominence in the food-sale market."

Keene, N.H.-based C&S has regional DCs in 15 states, with two additional locations in Maryland.