US Foods to Close Severn Warehouse
SEVERN, MD - US Foods has announced a tentative decision to close a distribution center in Maryland's Anne Arundel County, a move that would force a shift of operations to the company’s other area facilities.
"This tentative decision was made after a thorough review of our distribution network serving the Washington, D.C., metropolitan area revealed that we can provide the same high level of service to our customers in a much more cost-effective manner," US Foods said in a statement. "During the upcoming weeks, US Foods will be meeting with union representatives and other stakeholders to discuss the possible closing.”
With 350 people employed by the warehouse, officials with the Anne Arundel Workforce Development Corp. have told the Baltimore Business Journal that they plan to reach out to US Foods about the potential layoffs and work on helping impacted employees find new jobs.
The decision to close the warehouse comes on the heels of the company’s $3.5 billion merger with Sysco Corp. As we’ve previously reported, the Federal Trade Commission and several states are trying to block the merger, arguing it would create a monopoly in the food distribution industry.
US Foods Spokeswoman Michelle Calcagni told The Baltimore Sun that the potential closure of the Severn facility is entirely unrelated to the proposed merger.
