Penske Logistics Replaces XPO as Operator of Contentious Missouri Warehouse
Schnuck Markets Inc. has hired Penske Logistics as the new operator of its NorthPark distribution center in Kinloch, Missouri, the Midwestern grocery chain said March 24.
Penske replaces Greenwich, Connecticut-based XPO Logistics at the 915,000-square-foot warehouse.
“We are excited to have Penske Logistics managing our newest warehouse facility and look forward to their ideas for providing exceptional service to our customers,” Schnuck Markets Chairman and CEO Todd Schnuck said in a statement.
Penske ranks No. 14 and XPO ranks No. 2 on Transport Topics Top 50 list of the largest logistics companies in North America.
In February, XPO sued Schnucks for breach of contract, alleging the grocery chain failed to pay it more than $1.3 million. XPO also alleged the Kinloch building’s opening was rushed and that the logistics firm was unable to properly perform its warehouse management services.
Schnucks has denied the allegations in XPO’s lawsuit and told the St. Louis Post-Dispatch it terminated the contract with XPO because XPO failed to operate the warehouse properly under the terms of its contract.
Opening the NorthPark warehouse resulted in the loss of about 150 Teamsters-represented jobs at the Schnucks warehouse in Bridgeton. A boycott by the union of Schnucks stores ended March 20, when members ratified a new five-year contract with the Maryland Heights-based grocery chain.
Penske Logistics employs more than 14,000 people worldwide and manages more than 21 million square feet of warehouse space, including fresh food distribution centers.
