MONCTON, N.B. -- Co-op Atlantic is laying off 400 employees and closing four of its food stores in the region as it moves ahead with a restructuring plan that includes getting out of the food and retail gas businesses.
The company issued a statement Thursday that also said it has obtained an order from New Brunswick's Court of Queen's Bench to initiate proceedings under the Companies' Creditors Arrangement Act.
The company said the order will give the organization the time it needs to deal with its financial challenges.
Bryan Inglis, the company's interim chief executive officer, said the layoffs are the result of reduced operations in the food and retail gas divisions.
"We deeply regret the loss of jobs and will continue to do everything we can to assist impacted employees," Inglis said in the statement, adding that the company will continue to focus on its agricultural, bulk fuel and housing businesses. "Everyone impacted has been a valued employee and would be an asset to any organization."
As for the closures, they include grocery stores in Moncton, N.B., Labrador City, N.L., Grand Bay-Westfield, N.B., and Charlottetown.
Most of the layoffs will be made in New Brunswick, where 290 people will lose their jobs at the two affected stores, the company's head office in Moncton and a warehouse in the same city.
The remainder of the layoffs include 50 in Labrador, 36 at a distribution warehouse in Sydney, N.S., and 23 at the store in P.E.I.
The Co-op Group announced it was getting out of the food and retail gas businesses in April, a move that was approved by its member-owners May 12.
Meanwhile, KPMG Inc. has been appointed by the court as the monitor for the restructuring, but the Co-op Group will remain responsible for the day-to-day management.
As part of the restructuring, Co-op Group recently sold the majority of its assets in its wholesale and retail food and gas businesses to Sobeys Capital Inc.
As well, the company said it is working on securing additional financing with National Bank.
