The Reno Gazette-Journal reports that Scolari’s Food & Drug is outsourcing the distribution operations for all of its 19 stores in Nevada and California to C&S Wholesale Grocers. CEO Joey Scolari says in a prepared statement that the move was critical to the company’s ongoing viability: “We must evolve if we want to remain profitable.”
The company conceded that some people would lose their jobs in the move, but promised them “generous severance packages” as well as outplacement assistance.
The company conceded that some people would lose their jobs in the move, but promised them “generous severance packages” as well as outplacement assistance.
- KC's View:
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Gotta know when to hold ‘em, and know when to fold ‘em.
It almost certainly isn’t hyperbole to say that moves like this are about survival.
