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Schnuck Markets' Distribution Center Operator to Lay off Over 200 Employees

Schnuck Markets' Distribution Center Operator to Lay off Over 200 Employees

ST. LOUIS, MO – Amidst an ongoing dispute with the operator of one of its distribution centers, Schnuck Markets is facing the potential layoff of employees at the Missouri-based facility, in addition to an impending lawsuit.

Opened in July of 2016, XPO Logistics Supply Chain was initially hired to run the 915,000-square-foot distribution center in Kinloch, Missouri. According to St. Louis Business Journal, Schnuck Market was aiming to replace its Bridgeton facility and become more efficient, eliminating 190 union jobs in the transition.

Schnucks Facility

On February 17, 2017, XPO Logistics filed a lawsuit against the retailer alleging a breach of contract, and seeking more than $1.3 million for withheld funds. The operator claims in the suit that the facility was rushed, giving the company insufficient time to train its new employees. The logistics company also stated the facility boasted unsavory work conditions, in addition to condensation issues in the produce shipping area, according to the St. Louis Post-Dispatch.

The warehouse operator sent a letter to the retailer on February 8 to terminate its agreement. Schnucks, in turn, stated that XPO has breached their terms of contract, and alleged the company failed to run its facility properly. 

XPO Logistics stated that it plans to lay off the facility’s 204 employees, possibly by April 20. Scnucks reportedly called the lawsuit “baseless” to the Post-Dispatch, and said that it planned to end the agreement on April 20. Schnucks is currently looking for a new operator to run its facility.

Will the fate of the distribution center be resolved? Stick with AndNowUKnow for all the latest updates.

Schnuck Markets