SmartCo Foods says its disappointing sales figures failed to reach the company's expectations. The company opened its five Colorado locations a mere five months ago.
"Despite our best efforts, the level of sales achieved in the SmartCo Foods stores after several months did not meet our goals and is not sufficient to sustain continued operations," Dave Hirz, president of Smart & Final Stores LLC, the parent company of SmartCo Foods, stated in a news release. "We are grateful to all our associates who helped open and operate our stores, and are committed to doing all we can to support them through this difficult time."
The company says it plans to begin store closure sales on Wednesday.
Employees will be offered severance packages once the stores where they work are closed, but are also being encouraged to relocate to other open positions in nearby states.
"While we regret having to close these stores and the impact this will have on our Colorado employees and customers, we remain committed to the SmartCo Foods concept and will open stores under the SmartCo Foods banner in other markets where we believe the concept will be successful. The first of these will open later this week in Lake Forest, Calif.," Hirz stated.
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