MONTVALE, N.J. – C&S Wholesale Grocers is set to begin a month-to-month contract hauling groceries to Pathmark stores from a warehouse in Harrisburg, Pa., after the supplier closes five Pathmark warehouse facilities in Woodbridge, N.J.
C&S was the low bidder in a request for proposals to take over Pathmark distribution from Grocery Haulers Inc., Pathmark owner A&P said in bankruptcy court documents filed Tuesday. A&P has asked the court for permission to reject its contract with GHI, which provided exclusive hauling of groceries for Pathmark stores.
A&P called the GHI contract “substantially above market” and said the C&S offer would provide annual savings of $7.6 million, despite fuel costs resulting from trucks having to drive an additional 9 million miles per year. The Harrisburg facility, unlike the Woodbridge sites, is a non-union facility. A&P said the Woodbridge sites are scheduled to close on Sunday.
Both Grocery Haulers, Avenel, N.J., and a Teamsters union representing GHI employees, have filed motions to deny the order.
