MARSH RESTRUCTURING CUTS 70 POSTS AT HEADQUARTERS

ELLIOT ZWIEBACH

INDIANAPOLIS -- Marsh Supermarkets has eliminated 70 staff positions at its headquarters here in a corporate restructuring.

The restructuring will not affect store personnel, Don E. Marsh, chairman, president and chief executive officer, said in a statement.

The 70 positions were eliminated, Marsh said, because of higher overhead resulting from "significant increases" in property and other taxes, utilities and health-care costs.

The retailer did not estimate the amount of savings it expected to generate through the restructuring. Don Marsh could not be reached for further comment.

In his statement, Marsh said that for the company to continue operating efficiently and pricing fairly, corporate strategy mandated "a rapid reduction in overhead expenses without reducing services, especially in today's business climate."

The staff reductions hit every department at headquarters, from clerical up to vice president, Susan Herman, director of investor relations, told SN. A few people opted for early retirement, she said.

The reductions affect less than 1% of the company's total work force of 12,000 people. Marsh, which has annual sales volume of about $1.2 billion, operates 86 supermarkets and 177 convenience stores in central Indiana and western Ohio.