MONCTON, June 25, 2015 /CNW/ - Co-op Atlantic ("Co-op") announced today that it is has initiated certain transition measures in connection with its planned exit from its food and retail gas business, including closing four corporately owned food stores.
Today's announcement follows an announcement by Co-op that it has successfully obtained an order of the Court of Queen's Bench of New Brunswick initiating proceedings under the Companies' Creditors Arrangement Act (the "CCAA"). The CCAA proceedings will provide Co-op with the time and stability needed to continue its ongoing efforts to pursue solutions to its financial challenges.
The four corporately owned food stores that will be closed are Mapleton Road Co-op (Moncton, NB), Carol Wabush Co-op (Labrador City, NL), River Road Co-op Grand Bay-Westfield, NB), and Queen Street Co-op (Charlottetown, PEI).
"The closures are part of the ongoing restructuring of the Co-op and its planned exit from the food and retail gas business" says Co-op interim Chief Executive Officer Bryan Inglis. "We have taken steps to inform our customers and employees of the closures and will complete the closures in an orderly manner."
In connection with its transition from the food and retail gas business, Co-op also announced that it would be reducing its workforce by close to 400 employees in the coming weeks. The workforce reductions are necessary as a result of the reduced level of operations going forward.
"The positions being eliminated center around our food and retail gas divisions," says interim CEO Bryan Inglis. "This is part of the continuing plan to exit the food and retail gas sector and continue our focus on our agricultural, bulk fuel and housing businesses."
"We deeply regret the loss of jobs and will continue to do everything we can to assist impacted employees," says Inglis. "Everyone impacted has been a valued employee and would be an asset to any organization."
Co-op's intention to exit the food and retail gas business was previously announced on April 25, 2015 and was approved by the member-owners of Co-op on May 12, 2015. Co-op will continue to operate its remaining businesses during the CCAA proceedings while it completes a sale and restructuring process to achieve an outcome that is in the best interests of Co-op and its stakeholders.
SOURCE Co-op Atlantic
For further information: Media Contact: Mike Randall, Spokesperson, Co-op Atlantic, (506) 878 3025