WHITE PLAINS, N.Y. — The judge in A&P’s bankruptcy case here on Monday denied Grocery Hauler Inc.’s request to keep its trucking agreement with the retailer in place, a decision the company said could cost more than 300 jobs.
The rejection came after C&S Wholesale Grocers, as expected, over the weekend closed the five New Jersey warehouses from which GHI was hauling. Deliveries to Pathmark stores are now being handled by C&S from a C&S facility in Harrisburg, Pa.
The warehouse closures resulted in around 1,100 layoffs of C&S employees, reports said.
Both A&P, which operates Pathmark stores, and C&S, Pathmark’s primary supplier, have argued that the warehouse closings and new trucking agreement would save money.