C&S Wholesale Grocers to close Newburgh warehouse, begin laying off 244

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Hundreds of layoffs for Orange County employees of C&S Wholesale Grocers, Inc. began this month, as the supermarket supply company lost a major customer itself.

Two of the company’s 33 nationwide locations are currently in the Hudson Valley. Layoffs of 244 employees of C&S Wholesale Grocers’s Newburgh location began Oct. 1. Sixty employees accepted offers to transfer to another site, which could include its other regional facility in Chester. Termination dates for 134 employees have been extended and will run on a rolling schedule between Oct. 24 and Jan. 1, 2022.

The Newburgh warehouse, located at 1500 Corporate Boulevard, will officially close on Dec. 31, 2021. Its notice to New York State explained that the closure comes “as a result of a decision by one of their largest customers to move to a self-distribution model.”

The reference is to Ahold Delhaize, the parent company of Hannaford and Stop & Shop. The firm announced plans to create a self-distribution model over the next two years.

“We hate to lose C&S Wholesale,” said Maureen Halahan, president of Orange County Partnership, an economic development agency. “They’ve been a staple in our community for many, many years.”

Still, despite such a large number of people laid off, she remains positive about their futures.

“There’s job fair after job fair in Orange County right now,” said Halahan. “Not just Orange County, it’s a national issue that we are desperate for a work force.”

Halahan believes that anyone who wants to work will be able to quickly find another position.

The property was listed with a commercial real estate broker and has already seen interest, according to Halahan.

“There’s that opportunity,” said Halahan. “New company, and the workforce is already there.”

Orange County is home to a number of large employers that are often hiring, including Amazon and Medline Industries in Middletown, where “skills can be crossed over,” said Halahan.



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