Major Alcohol Distributor Warns 641 Workers of Potential Layoffs in Michigan

(Logo Image: Republic National Distributing Company)

A major alcohol distributor has issued conditional layoff notices to 641 employees in Michigan as it moves forward with a potential sale of part of its business.

Republic National Distributing Company filed Worker Adjustment and Retraining Notification (WARN) notices covering employees at five Michigan facilities in Kentwood, Traverse City, Escanaba, Livonia and Saginaw, WOOD-TV reported Wednesday. State records list a potential layoff date of Aug. 17.

The notices are tied to a possible acquisition of RNDC’s operations in control states, where state governments oversee the wholesale distribution of distilled spirits. Earlier this year, Martignetti Companies announced it had reached an agreement in principle to acquire those operations, including Michigan, though the transaction has not yet been finalized.

In a statement reported by WOOD-TV, RNDC stressed that the WARN notices are precautionary and required under federal law.

“The (WARN) notice is being provided in accordance with applicable legal requirements and does not indicate that any transaction has been completed,” an RNDC spokesperson said. “Any potential transaction remains subject to ongoing negotiations, regulatory approvals, and other customary closing conditions.”

The company emphasized that no final employment decisions have been made and that there are no immediate changes to employees’ jobs, pay, benefits or day-to-day responsibilities.

RNDC has issued similar conditional WARN notices in other control states. In Oregon, the company told state officials that while the facilities are expected to be sold, the buyer or one of its affiliates may offer employment to some current workers. Others could remain with RNDC temporarily to provide transition services.

Because those decisions have not yet been made, the company said it is required to notify affected employees in advance.

Martignetti previously said it expected the acquisition to close this summer, but neither company has announced that the deal has been completed. WOOD-TV reported that it has reached out to Martignetti for additional comment.