Associated Wholesale Grocers said late Tuesday that it would combine operations of its Fort Worth Texas division with its Oklahoma City division in a move to save costs.
AWG said it had entered into an agreement to sell the Fort Worth facility to an unnamed buyer. The cooperative distributor had acquired the 1.1-million-square-foot Fort Worth warehouse from Albertsons in 2007.
AWG said it expected to vacate the facility and complete the transition of its Fort Worth business to what it called a “more productive and efficient” Oklahoma City distribution center by Oct. 31.
In a message to Fort Worth employees, David Smith, president and CEO of AWG, said the closure would support AWG’s mission of providing the lowest possible cost for services.
“To remain the low cost provider, we must constantly evaluate how we operate and what we can do to improve. This requires us to consider and implement change when necessary to stay true to our mission. Please know that staying true to our mission and supporting our commitments to our member-retailers for the lowest possible cost sometimes requires us to make difficult decisions. That is certainly the case with regard to my writing today and we are deeply saddened to close our Fort Worth facility even though we know this is the right thing for us to do.”