Grand Union Co. Closing Depot
Co. here is closing a distribution center in upstate New York in an attempt to control costs related to its Chapter 11 filing earlier this year.
The company will instead be supplied by C&S Wholesale Grocers, Brattleboro, Vt., according to an official from the office of state Senate Majority Leader Joseph L. Bruno in Troy, N.Y.
Bruno was working with Grand Union to negotiate a compromise in lieu of closing the facility.
Some 500 employees may lose their jobs. The facility will shut its doors in July, according to a local newspaper.
Kmart CEO Post Offered to Cline?
TROY, Mich. -- Kmart here has reportedly offered its vacant chief executive officer post to Richard G. Cline, chairman of natural-gas company Nicor, Naperville, Ill.
If Cline accepts the offer, observers expect Kmart to name Ronald J. Floto, executive vice president and president of Super Kmart Centers, as president and chief operating officer.
Kmart declined to comment on the rumors.
Cline, 60, is a nominee to join Kmart's board as an outside director at the company's annual meeting tomorrow.
Megafoods Wholesaler Switch OK'd
PHOENIX -- Megafoods Stores, Mesa, Ariz., said it has received approval from the U.S. Bankruptcy Court here to move the majority of its $150 million food distribution business in Arizona from Fleming Cos., Oklahoma City, to Certified Grocers of California, Los Angeles, effective June 6. The 44-store chain said it will continue to buy approximately $17 million worth of produce from Fleming.