Moncton, NB, April 25, 2015 /CNW/ - The Board of Directors for Co-op Atlantic today recommended to its member-owners that the organization divest itself of its corporate food and gas retail and wholesale assets and exit the food and fuel wholesale business. As well, the Board has recommended entering into a purchase and sale agreement with Sobeys to acquire those assets.
This recommendation follows several months of operational and financial review which determined that this is the best course of action for long-term viability of member-owners.
"Co-op Atlantic and its member-co-operatives have worked hard to remain viable in the increasingly competitive world of retail food and gas," says Co-op Atlantic Board Chair Adélard Cormier. "This decision has been a difficult one for management and the board but is, we believe, the best option for the continued viability of the member-owner stores and the co-operative movement in Atlantic Canada."
The proposed purchase and sales arrangement would see Sobeys purchase the majority of the corporate food and gas retail sites and wholesale assets.
Co-op is recommending its owner-members negotiate wholesale supply agreements with Sobeys to ensure their long-term success moving forward. Those potential agreements will be decided by each member-owned store in discussions with Sobeys.
The member-owners now have until May 12th to vote on this recommendation.
Following the completion of that vote Co-op Atlantic will be in a better position to assess what this will mean for Co-op Atlantic and its remaining divisions moving forward including home energy and agriculture.
SOURCE Co-op Atlantic
For further information: Co-op Atlantic, Monique Bourque, (506) 863-3336