AUSTINTOWN Snyder's Drug Stores to close warehouse in Nov.

A union official is hoping another company will take over the warehouse.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
AUSTINTOWN -- Snyder's Drug Stores has told workers it intends to close its Austintown warehouse Nov. 26.
A 60-day plant closing notice, which is required by federal law, was posted Thursday by the Minnesota-based retailer, said Bob Bernat, president of Teamsters Local 377, which represents workers at the facility.
He was to meet with management today but said it didn't appear there was any way to avoid the closing.
"There's always hope that someone else will come out there. Giant Eagle will be working on it," he said.
Giant Eagle, a Pittsburgh-based grocer, owns the Victoria Road warehouse and has been leasing it to Snyder's, which operates the building as Western Wholesale Distribution.
The union has 70 members working there, with about 40 laid off.
A Giant Eagle spokesman said he would have to call other company officials before commenting on the future of the warehouse. An official at Snyder's headquarters declined to comment about the warehouse.
The warehouse had employed about 250 in recent years when it was operated by Phar-Mor as Tamco. Phar-Mor liquidated its operations in bankruptcy court last year.
Facing bankruptcy
Now, it's Snyder's that's in bankruptcy. The company filed its case earlier this month, saying it was being dragged down by its acquisition of Drug Emporium in 2001.
Snyder's had hoped to use Drug Emporium, which was based in suburban Columbus, to drive its expansion throughout the Midwest. The Austintown warehouse was going to be part of that expansion as Snyder's used it to supply inventory to Drug Emporium stores. Snyder's didn't have a large, central warehouse before leasing the Austintown building.
Snyder's said last year it intended to employ close to 200 at the warehouse. Its bankruptcy filing, however, said it was unable to make the Drug Emporium stores profitable despite investments made in those stores. Snyder's intends to sell or close the 77 Drug Emporium stores, while continuing to run 78 stores that operate under the Snyder's name. There also are 53 independent stores that aren't involved in the bankruptcy.
Bernat had expected bad news from the bankruptcy filing because Snyder's remaining stores are smaller, neighborhood drugstores that don't require the large inventory that Drug Emporium stores do.
shilling@vindy.com