National grocery distributor planning major layoffs in Prince George's

Oct 8, 2015, 6:00am EDT Updated Oct 8, 2015, 11:40am EDT

A Prince George's-based subsidiary of a multibillion-dollar wholesale grocer said Wednesday it would close two distribution centers in Maryland in a move that will impact 700 employees.

Collington Services LLC, a subsidiary of Keene, New Hampshire-based C&S Wholesale Grocers, plans to close a grocery distribution center in Upper Marlboro and a general merchandise distribution center in Landover, both of which Collington Services has operated since 2000. Both serve as distribution centers for Safeway, which is one of the region's largest employers.

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Other Collington Services sites in Maryland and Pennsylvania will provide distribution to… more

The closures will happen over time and into 2016, according to company spokesman Wade Gates. Not all 700 will lose their jobs, the company said, though how many eventually will is unclear at this time. Employees will be able to apply for jobs at other C&S facilities, in Maryland and Pennsylvania.

The company filed a notice Wednesday in Maryland under the Worker Adjustment and Retraining Notification Act. The WARN notice said 191 positions would be eliminated beginning on Dec. 5.

“This is a very difficult situation,” Mark Pitts, director of warehouse operations for Collington Services, said in a statement. “We intend to work closely with the unions that represent our employees and with our non-union associates in order to ensure that everyone can participate in a transition plan that is fair and equitable.”

C&S Wholesale Grocers bills itself as the largest in the U.S. and serves about 5,000 stores across the country, according to its website. The company operates regional distribution centers in 15 states, with two other locations in Maryland.Forbes ranked the company 10th on its 2014 list of largest private companies in the U.S., with revenue of $25 billion and 14,000 employees.

This industry has experienced “a trend toward consolidation among grocery wholesalers,” due to increased competition and weak economic conditions influencing consumers’ purchasing behaviors, according to a 2015 IBISWorld market research report.

Mergers, acquisitions and other structural changes have confronted grocery suppliers for years, according to a 2000 article from the U.S. Department of Agriculture. Consolidations have stemmed from changes in grocery sales, increased spending for prepared meals and nontraditional retailers gaining prominence in the food-sale market.

The closure of these Collington Services sites, which could affect both full- and part-time employees, comes after Maryland’s unemployment rate decreasedfrom 5.2 percent to 5.1 percent in August, according to the Labor Department’s Bureau of Labor Statistics.