Sale to result in 225 jobs lost in Harrison

Editor’s note: Roby Brock, with our content partner Talk Business, wrote this report. He can be reached at [email protected]

Rhode Island-based United Natural Foods Inc. today (June 10) announced the sale of a company division to L&R Distributors, a move that will lead to closure of a Harrison distribution facility and the layoff of 350 workers companywide.

UNFI officials tell Talk Business that about 225 of the laid-off employees work in the Harrison plant, which will be shut down after the deal closes.

UNFI is selling its non-food products and general merchandise division to L&R in order to concentrate on its core distribution business of natural, organic, and specialty foods and products. Terms of the transaction were not disclosed.

"Following the closing of the sale of its non-foods and general merchandise lines of business to L&R Distributors, UNFI will cease operations at its Harrison, Arkansas facility," the company said in a press release. "This facility and the related assets will be considered held-for-sale once the sale to L&R Distributors is consummated, which, subject to the satisfaction of customary closing conditions, is expected to occur in UNFI’s first quarter of fiscal 2012, ended October 29, 2011. All specialty food products from the Harrison, Arkansas facility will be transferred into the company’s other distribution centers across the United States."

As a result of the transaction and the closure of the Harrison facility, UNFI said it expects to incur restructuring costs of approximately $11 million to $12.5 million during the fourth quarter of fiscal 2011 and first quarter of fiscal 2012.

Harrison, which is located in Boone County had a 7% unemployment rate in April.