The Virginian-Pilot
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VIRGINIA BEACH
U.S. Foodservice Inc., a major distributor of food and supplies to restaurants and institutions, said Tuesday it will close its Virginia Beach operations by the end of January as it consolidates some of its facilities.
The company, the nation's second-largest food-distribution company behind Sysco Corp., said it has 206 employees at its warehouse and offices on Diamond Springs Road near Northampton Boulevard.
U.S. Foodservice said it will provide these employees some opportunities to transfer to other company facilities. Those who are unable to do so will receive benefits from a severance program, it said.
Warren Harris, Virginia Beach's director of economic development, said he recently talked with U.S. Foodservice about redevelopment opportunities in the city, and the company didn't disclose any plans for closing its Virginia Beach operations.
"We were caught a little off guard," Harris said.
Job losses at the Virginia Beach warehouse and at local companies doing business with U.S. Foodservice could put pressure on the city's unemployment rate, which has remained well below the rates for Hampton Roads and Virginia. Its jobless rate edged up to 5.9 percent in September from 5.7 percent in August. That compared with 6.7 percent for Hampton Roads and 6.6 percent statewide in September.
U.S. Foodservice said it will serve restaurants and other customers in the region from larger, newer warehouses in Roanoke and Raleigh, N.C. Shutting its operations in Virginia Beach, the company said, is part of a program that included investing in more modern facilities in Roanoke, Raleigh, Perth Amboy, N.J., and south Florida.
The Virginia Beach warehouse had been part of Sandler Foods, a Virginia Beach-based food distributor that was sold by the Sandler family in the early 1990s to PYA/Monarch Inc., one of U.S. Foodservice's predecessor companies.
Ken Sherwood, chef de cuisine at Trilogy Bistro in Norfolk, said U.S. Foodservice's decision saddened him because he had done business with people at the Virginia Beach facility for more than 25 years.
"That property on Diamond Springs Road is an icon," said Sherwood, who recalled dealing with members of the Sandler family. Trilogy, he said, uses two other major food vendors in addition to U.S. Foodservice.
"It's always given Sysco a run for its money," Sherwood said.
U.S. Foodservice said its service to this region won't be interrupted as it shifts operations to the facilities in Roanoke and Raleigh.
In a recent list of the nation's largest privately-held companies, Forbes magazine ranked U.S. Foodservice 11th with annual sales of $19.22 billion. The company, it said, has 27,630 employees.
Two private-equity investment firms, Clayton, Dubilier & Rice Inc. and Kohlberg Kravis Roberts & Co., bought U.S. Foodservice two years ago in a transaction valued at $7.1 billion.
Tom Shean, (757) 446-2379, tom.shean@pilotonline.com
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Go South
Now is a good time to consider applying for one of 1200 new jobs at the Kia auto plant in West Point Ga, between Auburn Al and Atlanta Ga.
That would be....
206 for the WAREHOUSE ONLY. The number is actually higher than that when you include the office workers that are being offered VERY limited transfers. And yet the "Big Boys" aren't losing any sleep over it. I'l sure they ALL knew about this for quite some time.
like i said i worked there
like i said i worked there as a delivery driver for 6 years and believe you me there isnt 200 warehouse workers there.200 total sounds about right..good luck guys
Who do you sleep with?
Exactly how do you know the "big boys" are not losing any sleep over this? Are you watching over them as sleep at night? The fact is that everyone within the company is effected in one way or another and everyone, including the "big boys" are very sensitive to this situation.
This was a family, and a family is be broke apart. It is a very sad situation for ALL involved!
Then explain.....
The perhaps YOU can explain WHY the upper management has ALREADY been offered positions in other divisions. While other employees that have been with US FOODS for many years are left to flounder.
Unless YOU are one of those involved DIRECTLY with this I suggest you keep your comments to yourself. Thank you.
I work for this Company
Well..I am directly involved, my friend! I can tell you that most of the "upper" management was kept out of the loop until about 2 weeks before the announcement. While, yes,some people are now faced with uncertainty, jobs offers were made to most employees,if they could relocate, not just upper management like you wrote.
i worked there from 99 to
i worked there from 99 to 2005. the building is too small. when pya merged with u.s. foodservice they added about 400 new customers.and there just wasnt enough room to move around in.. also tho. im sure alot of the drivers will still be there and the sales people too. after all they still need someone to sell the product and to deliver it.the food will be shuttled in from roanoke or raleigh, like they do now. only now all of it will be.
Go local!
Even with US Foods continuing to provide service to the area, restaurants loose the convenience of being able to pick up items at the warehouse. Also the employees getting paid by US Foods are now spending those paychecks in Raleigh or Roanoke. How is that helping Hampton Roads? Keeping business local just makes more sense! Valley Foodservice is a local family-owned company, so all the employees are local and the company profits are too. I support locally owned restaurants instead of chains, so shouldn't those restaurants do the same and support local distributors?
Local Yocal
Are you really concerned with the local infrastructure not surviving, Or just drumming up business for Valley foodservice. Sysco, and PFG have no will call pick ups. Learn the facts about what you are talking about before you talk nonsense on the internet. This move will be better for the local business that deal with overheads and cost of operations everyday. And i'm sure thats what we ALL really care about
NOT TRUE!!!
That is just not true!! The employees that work the Hampton Roads area and surrounding towns are your neighbors. They work, live and spend money with the businesses there locally in Virginia! They are the same sales people that worked for U.S. Va. Beach. These sales prople did not lose thier jobs. Remeber that and tell others.