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CINCINNATI - The Kroger Co. said yesterday it has sold the assets and operations of its Kentucky distribution center, located in Louisville. Zenith Logistics, Inc., a subsidiary of Walton, Ky.-based Verst Group Logistics, will own and operate the warehouse for Kroger, while Lake Success, N.Y.-based Transervice Logistics, Inc. will own and operate the transportation functions at the center. Terms of the deal were not disclosed.
Zenith Logistics already operates Kroger distribution centers in Indianapolis and Cincinnati, while Transervice provides transportation for Kroger in Indianapolis and Denver, according to published reports.
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The 776,000-square-foot Kentucky warehouse ships dry groceries and frozen and perishable products to 140 stores in Cincinnati-based Kroger's Mid-South division.
The center's 850 employees will be offered jobs with the new companies, a Kroger spokesman said.
However, the president of Teamsters union Local 89 criticized Kroger's cost-cutting move, saying it will result in deep wage and benefit cuts for the workers.