The private operator of a Schnuck Markets warehouse near St. Louis is laying off more than 200 employees, reportedly the result of a contract dispute with the grocer.
Connecticut-based XPO Logistics, which Schnucks hired to staff the 915,000-square-foot warehouse that opened last year, is making the staff cuts amid allegations that Schnucks owes the provider more than $1.3 million, the St. Louis Post-Dispatch reported.
XPO sued Schnucks for breach of contract and has also accused the grocer of rushing the warehouse’s completion, which hampered the XPO’s ability to manage the facility, located in Kinloch, Mo., the Post-Dispatch reported.
Schnucks denies XPO’s charges, telling the Post-Dispatch it terminated their contract because the service provider failed to operate the warehouse properly.
The P-D further reported that, in a letter to Missouri economic development officials, XPO said it was laying off 119 full- and part-time employees at the Kinloch facility, 46 employees in Hazelwood and 39 employees in Vinita Park, all by April 20.
“Schnucks is now working to secure another logistics partner for an orderly and seamless transition and will do everything we can to ensure customers will not be impacted,” Schnucks spokesman Paul Simon told the P-D.
Last year, Schnucks laid off 190 union employees at its Bridgeton, Mo., warehouse in anticipation of the move to the Kinloch facility, staffed by XPO’s non-union workforce. In response, Teamsters Local 688 announced a boycott of Schnucks stores.