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QUINCY, Mass. and LANDOVER, Md. -- The Stop & Shop Supermarket Co. and Giant Food, both divisions of Ahold USA, said yesterday that they have sold Giant Food's distribution and office facility in Landover, Md. and Stop & Shop's distribution facility in North Haven, Conn. Affiliates of Conshohocken, Pa.-based Preferred Real Estate Investments bought the two properties in a combined real estate transaction for a total sale price of $89.95 million.
The two sites will become part of Preferred Real Estates Investments' future development program. No immediate plans for the properties were disclosed.
In connection with the sale, Stop & Shop and Giant both have executed leases of their respective facilities that will allow them to relocate their operations smoothly.
Giant said in May of last year that it planned to sell the Landover facility and move its office headquarters in the region. The company also expects shortly to conclude negotiations for its new regional offices at a location close to the existing Landover site.
In a separate announcement, Stop & Shop said it would shut down the North Haven distribution facility by mid-2006 as part of its initiative to improve the efficiency of its New England distribution network and deliver enhanced customer value. The operations handled by this facility will be taken over by Stop & Shop's distribution facility in Freetown, Mass. and a third-party supplier. The North Haven closure will result in the loss of about 850 union and nonunion jobs, although more staff will be needed at the Freetown facility to take on the extra work.
Stop & Shop will offer the affected workers a severance package. For union associates, the package will be based on discussions with union leadership.
Noted Marc Smith, c.e.o. and president of Stop & Shop, "We will assist our associates in finding alternative employment by offering targeted retraining, job counseling programs, and access to information about other job opportunities. There also may be opportunities for some North Haven associates at our Freetown distribution center or elsewhere within the company."
Stop & Shop employs more than 58,000 associates and operates 376 stores throughout Massachusetts, Rhode Island, Connecticut, New Hampshire, New York, and New Jersey.
Giant Food, LLC operates 187 supermarkets in Virginia, Maryland, Delaware, and the District of Columbia, employing more than 25,000 associates. Giant stores in Delaware operate under the Super G trade name.