I am writing because the communication we sent to our employees a few weeks ago has apparently resulted in misinformation and we now want to set the record straight.
* On Dec. 8 the sale of 185 Grand Union stores to C&S Wholesale Grocers was approved by the US Bankruptcy Court in Newark, NJ. This sale transaction is expected to be completed on or about Jan. 15, 2001. C&S Wholesale Grocers will become the new owner of 185 former Grand Union stores and will operate them under the name GU Markets LLC, a wholly owned subsidiary of C&S Wholesale Grocers.
* These 185 former Grand Union stores will remain open, continuing to provide quality products to our customers and communities.
* C&S intends to divest approximately 90 of the 185 stores to third parties (including Tops, Price Chopper, Hannaford, Stop n' Shop, Shaw's and Pathmark) who will in turn continue to operate the former Grand Union stores, serving customers and the communities.
* C&S and a number of the third party operators have expressed a strong willingness to employ current Grand Union associates in those stores.
The required communication which the company issued to all Grand Union associates and community leaders on Nov. 27 was just that - a legal notice required as part of the company's compliance with the federal Worker Adjustment and Retraining Notification Act ("WARN"). The WARN Act requires employers to give advance notice of certain large-scale reductions in force, business sales, or other employment events. Unfortunately, our letter was apparently misinterpreted to mean that Grand Union stores being sold to C&S would be closing on Jan. 15, 2001, which is not the case. The 185 former Grand Union stores will remain open, serving customers, as in the past.
If you have any questions or would like further information, please feel free to call our manager of Corporate Communications, Susanne Marsh at (518) 877-0289, ext. 312.
Jeffrey P. Freimark
President and Chief Executive Officer