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Grocer lays off St. Louis support staff, to close 2 distribution centers

An unspecified number of roles were cut from its St. Louis support center.
A St. Louis-based grocer is making cuts.

ST. LOUIS — Save A Lot, the St. Ann-based discount grocer, has laid off staff in its St. Louis support center and plans to close two distribution centers, moves it says support its long-term strategic plans.

Save A Lot CEO Leon Bergmann said in a statement that the cuts are part of the company's transformation into a wholesale supplier to independently owned stores. It's cutting an unspecified number of roles at its St. Louis support center, and closing distribution centers in Coxsackie, New York, on Feb. 25 and St. Johns, Michigan, on March 11. It also didn't say how many employees at the distribution centers would be affected.

"Store locations served by these centers will continue operations as normal and will be supplied by other distribution centers in our network," the company said, adding that it takes "any decisions about our people very seriously," and is treating impacted workers "with dignity and respect."

Facing as much as $820 million in debt as of August 2019, Save A Lot parent company Moran Foods LLC in 2020 recapitalized in a deal with a new investor group, coming away with a $350 million cash infusion and the cancellation of $500 million in debt. That freed the company to cut costs by transferring ownership of most of its company-owned Save A Lot stores to licensees. Save A Lot said in February 2022 that it had completed its transition to “a pure play wholesale model.”

Moran earlier this month said it had completed a debt refinancing that will provide it with more liquidity and operational flexibility while lowering its borrowing costs.

Read more of the story on the St. Louis Business Journal's website by clicking here.

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