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Associated Wholesale Grocers Announces Sale and Closure of Texas Division

Associated Wholesale Grocers Announces Sale and Closure of Texas Division



KANSAS CITY, KS – Associated Wholesale Grocers (AWG) has announced the sale and closure of its Fort Worth division, its only current operation in Texas, as the company looks to maintain its operations as a low cost provider. 

David Smith, President and CEO, AWG“Our mission at AWG is to provide our member-retailers all of the tools, products, and services they need to compete favorably in all markets served. This includes top-quality supermarket merchandise and support services, all at the lowest possible cost. To remain the low cost provider, we must constantly evaluate how we operate and what we can do to improve. This requires us to consider and implement change when necessary to stay true to our mission.”

AWG's Fort Worth, Texas Facility

The company stated in a press release that it has entered into an agreement to sell its Forth Worth facility and will consolidate the division’s remaining business into its “more efficient and productive Oklahoma City Distribution Center,” according to a statement from the company to its member-retailers. AWG further explained that consolidating its Texas business with its Oklahoma City facility will provide synergies for its entire organization, and provide its former Forth Worth members with an improved assortment

“Please know that staying true to our mission and supporting our commitments to our member-retailers for the lowest possible cost sometimes requires us to make difficult decisions. That is certainly the case with regard to my writing today and we are deeply saddened to close our Fort Worth facility even though we know this is the right thing for us to do,” David continued. “We understand that the positive business implications do not overcome the tremendous impact this will have on our loyal Fort Worth employees and their families, and that is what made this decision so difficult and heart-wrenching. AWG has a tremendous group of employees and we will continue to need high-quality people to fill positions throughout our organization. We hope that many of those affected will be interested in pursuing continued employment with the Company in one of our other locations. We are truly thankful for their contributions to the organization and their unyielding dedication to AWG and its members.”

AWG

AWG will continue to concentrate its organic and strategic growth across its distribution areas. The company recently brought on over 550 new members which operate approximately 1,000 new stores. 

The company expects the facility’s closure and transition of business to be complete by December 31, 2017.

Associated Wholesale Grocers