Norrenberns Foods announced that they intend to shut down their Tom’s Grocery stores in Nashville and Freeburg.
By Alex Haglund
Norrenberns Foods announced last week that they mean to close their Tom’s grocery stores in both Nashville and Freeburg.
Following news of the closure of the Freeburg store, the company madea s statement that the Nashville store would soon be closed as well. The Nashville location’s sign and Facebook page made an announcement of the closing here.
Norrenberns cited “the challenge of operating unionized and competitive cost and work rule disadvantages it has faced when operating against non-union stores as well as the crushing cost burden of participation in the UFCW joint union/employer pension plan” as their reasons for the closures.
“Under federal law, multi-employer union pension funds that are underfunded can make assessments (called withdrawal liability) on contributing employers to make up for funding shortfalls,” read a statement from Norrenberns Foods. “For our family, those assessments were for millions of dollars. In addition, when the majority of groceries are now sold at non-union businesses (Wal-Mart, Target, Aldi, Save-A-Lot, Ruler Foods, Dollar General, etc.) we find ourselves at a competitive disadvantage. For these reasons, we had no choice but to discontinue operations at these locations.”
The company also made a statement thanking the staff and customers at their Nashville and Freeburg stores, saying that this is, “an emotional and difficult decision. We have been blessed by the incredible staffs at both locations, wonderful people who have become like family. We are forever grateful and appreciate the friends and neighbors who have loyally supported us these many years.”
The company has not specified a date for the closings, stating that it will depend on how long inventory liquidation takes.
Currently, the Nashville store has new hours, 9 a.m. to 7 p.m., and prices are reduced by 10-percent storewide. Further reductions in price are likely to occur as time goes by. Check the store’s signage and Facebook page for more details.