GARDINER, Maine — Associated Grocers of Maine here said it will wind down and liquidate its business after being placed in receivership Wednesday.
The company, which was founded in 1953, was servicing over 300 stores in Maine, New Hampshire and northern Massachusetts out of a 261,000-square-foot distribution center, according to the wholesaler's website.
AGM representatives could not be reached for comment. In a letter posted on the company's website, James C. Ebbert, the court-appointed receiver, said the company has struggled for several years to remain profitable.
"Unfortunately, the continued loss of customers, coupled with struggling same-store sales, resulted in a significant operating loss for the fiscal year ended March 25. "The board and management sought extensive advice from [the company's] legal and financial advisers and, after careful analysis, have made the very difficult decision that losses are marketplace-driven and cannot be reversed.
"Despite management's best efforts to secure a deal with another supplier to ensure a smooth transition for AGM's customers, no viable option was found. Customers should start looking for an alternate supplier immediately."
The letter said Pine State Trading Co., Augusta, Maine, "has expressed a willingness to supply cigarettes, tobacco, candy and other c-store items" to AGM customers.
