RNDC to Lay Off 558 Workers as Georgia Operations Shut Down

Republic National Distributing Company is shutting down its Georgia operations and laying off 558 workers as the alcohol wholesaler winds down portions of its business under Chapter 11 bankruptcy protection.

The permanent layoffs are expected to begin Oct. 19 and continue over the following two weeks, according to four WARN notices filed for RNDC and affiliated companies, reported by CBS News Atlanta. Employees affected by the closures will not be eligible to transfer to other RNDC positions, according to the notices.

The layoffs involve workers at two facilities: 1 National Drive SW in Atlanta and 4300 Wildwood Parkway SE near Marietta.

The four WARN notices cover 321 employees of Republic National Distributing Company, 157 employees of Republic National Distributing Company of Texas, 78 employees of Young’s Market Company and two employees of Young’s Market Company of Arizona, according to CBS News Atlanta.

RNDC said it explored financing and other alternatives that could have kept its Georgia operations open but was unable to secure sufficient funding.

The Georgia closures are part of a broader restructuring following RNDC’s July 26 Chapter 11 bankruptcy filing.

The company entered bankruptcy proceedings to pursue potential sales of portions of its business while winding down operations that could not be sold. RNDC said some operations have been sold, allowing those businesses to continue serving customers and suppliers while preserving more than 5,000 jobs.

The company’s joint ventures in New York, Illinois, Ohio, Michigan, Indiana and Kentucky are not part of the bankruptcy filing.

“Over time, our industry has evolved, consumer preferences have shifted and the wholesale environment has grown increasingly challenging,” RNDC said, according to CBS News Atlanta.

The company said the decision to close the Georgia operations was not made lightly.

The closure of RNDC’s facility at 1 National Drive will not affect every alcohol distributor operating at the property.

National Distributing Company, a separate legal entity from RNDC, will remain at the Atlanta facility. NDC is not involved in RNDC’s bankruptcy proceedings, and none of its employees are affected by the layoffs.

“NDC’s business is strong and growing,” Randy Hecklinski, NDC’s executive vice president and managing director, said in a statement. “We are expanding our team and investing in new technology and capabilities to better serve our customers and suppliers.”