MILWAUKEE, WI – Roundy’s, Inc. has announced the closure of its Stevens Point, WI distribution facility just months after it announced its planned departure from the Twin Cities area.
In a mass layoff notice sent to officials in the state of Wisconsin, the company stated that the closure will result in the loss of 196 jobs by September 13th, according to the Milwaukee Journal Sentinel.
Roundy’s says that the closure is in connection with its recent announcement of the divestiture of its Rainbow stores in the Twin Cities area, according to a press release.
In that divestiture, Roundy’s sold 18 Rainbow stores to a group of local grocery retailers, including Supervalu, in a $65 million deal in attempts to fully exit the Minneapolis/St. Paul market. Supervalu’s aggregate purchase price across its multiple purchase agreements is approximately $35 million. If it cannot find buyers for its remaining 9 stores, the company plans to close them as well.
For more information on this process, check out our previous story by clicking here.
The company will now consolidate its operations to its Oconomowoc, WI and Mazomanie, WI distribution facilities.
The Stevens Point facility will follow a gradual phase-out plan before operations cease entirely by September 30, 2014.
