It appears one of Doniphan County’s larger employers could be shutting down this fall.
Affiliated Foods is likely to close its warehouse in Elwood, Kansas, at the end of October, employees told the News-Press. Employees said they were told the warehouse, which stores and delivers food for member grocery stores in the area, would shut down in the third week of October.
“That is what they are telling us. As of October, our facility would be closed,” said one Affiliated truck driver, who did not want his name published. “I am not real happy with them.”
The future of the Elwood warehouse was thrown into question last week, when Associated Wholesale Grocers of Kansas City, Kansas, announced plans to merge with Affiliated Foods Midwest Cooperative, which includes a food distribution warehouse in Elwood.
AWG is the bigger entity, with a network of 3,000 stores in 30 states. AWG made it clear that Affiliated would be part of its bigger grocery cooperative, fueling concern that the Elwood warehouse would be consolidated with AWG’s distribution facility in Kansas City.
Affiliated does not supply St. Joseph grocery stores from the Elwood facility, but it does deliver to some stores in the surrounding area.
Despite the notice given to employees, Doniphan County’s top economic development official noted that the company has not officially announced plans to close the warehouse. Adrienne Korson, director of economic development for the county, said her office is working closely with all parties and thinks other companies would be interested in moving into the warehouse facility if Affiliated does leave Elwood.
Officials with AWG in Kansas City and Affiliated Foods in Norfolk, Nebraska, have not commented on the future of the Elwood warehouse. An official with AWG in Kansas City said no decision on the future of the Elwood warehouse has been made public.
More information could follow coop member meetings, which are closed to the public, on Monday, Aug. 8, in Elwood and Friday, Aug. 12, in Norfolk. AWG has said in previous releases that the merger is subject to certain conditions and approval by Affiliated Foods shareholders.
The U.S. Worker Adjustment and Retraining Notification Act requires 60-day notice of mass layoffs. Affiliated employs between 120 and 200 people in Elwood.
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