EAST BRIDGEWATER, Mass. -- Shaw's Supermarkets here said last week its parent company, London-based J. Sainsbury plc, has decided to close a grocery and perishables warehouse it purchased as part of its acquisition of Star Markets Co., Boston.
e decision and options available to displaced employees.
Shaw's initially said it planned to retain the facility. However, it said a subsequent analysis indicated the warehouse would require significant capital investment to upgrade it to meet Shaw's minimum standards; the chain said it also found environmental restrictions that would constrain future expansion.
In addition, Shaw's said the two chains have significantly different technologies, and the costs and time to integrate them would be prohibitive.
Shaw's said in late June it would pay $476 million to acquire 52 stores from Star, including five units it agreed to divest along with four of its own stores.