MAUMEE, Ohio, Jan. 15, 2017 /CNW/ -- The Andersons, Inc.
(Nasdaq:ANDE) announces today its plans to exit the retail business
and close its remaining four retail stores in the second quarter of
2017. The retail closings will have no impact on the Company's
grain, ethanol, plant nutrient and rail operations.
"The decision to close The Andersons stores was not easy for
anyone involved," says CEO Pat Bowe.
"Choosing to cease a business that has spanned 65 years and employs
about 1,050 people is tremendously difficult."
The closing will eliminate approximately 650 positions in the
Toledo area and 400 positions in
Columbus, of which approximately
75 percent are part-time positions. The Company will provide
employees with severance packages and outplacement services to
assist them in their career transitioning.
During the past eight years the Retail Group has incurred
pre-tax losses, including previous asset impairments, in excess of
$20 million and closed three
stores.
The full financial impact of this closure has not been
determined. The Company expects to record pre-tax impairment
charges on long-lived assets related to the Retail segment of
approximately $6.5 million in the
fourth quarter of 2016.
The Company expects to record a pre-tax charge in the range of
$9 to $14 million in the first half
of 2017 for severance costs and other costs associated with the
closure. The Company also anticipates that the full carrying value
of its inventory may not be recoverable during the store
liquidation process. Gains or losses are anticipated on individual
properties upon sale, however the Company is uncertain of the
timing and amount of those sales.
Subsequent to the impairment charges noted above, the Retail
Group's assets at their December 31,
2016 carrying values include:
Inventory and other
assets $21.0 million
Long-lived
assets
$9.8 million
About The Andersons, Inc.
Founded in Maumee, Ohio, in
1947, The Andersons is a diversified company rooted in agriculture
conducting business across North
America in the grain, ethanol, plant nutrient and rail
sectors. For more information, visit The Andersons online at
www.andersonsinc.com.
The Andersons Stores Facts:
- Original Warehouse Market opened in Maumee in 1952
- Stores average 140,000 square feet
- Stores average 125,000 different SKUs
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SOURCE The Andersons, Inc.