190 More Lay-Offs in Lubbock - KCBD NewsChannel 11 Lubbock

2/26/03

190 More Lay-Offs in Lubbock

190 people work at this distribution plant in Lubbock and if they remain unemployed that could be a $6 million loss to Lubbock's economy.

Earlier this month, the bankrupt Kmart corporation announced they were no longer going to sell groceries inside its store. Therefore, ending its contract with Fleming Foods, and it effected the Lubbock distribution plant.

A representative for Fleming Foods says Kmart was 20% of its business and its had to make cuts since Kmart pulled out of its contract.

This is not the first string of lay-offs in Lubbock. Covenant Medical Center started laying off people last November. And to this date, 148 people have lost their jobs at Covenant.

"The national trend lately has been a slow economy. Lots of lay-offs. We can't help but be concerned in Lubbock. Covenant has laid off people, now Fleming is doing the same. Is Lubbock finally catching up to the national trend?" asked NewsChannel 11. "I don't think Lubbock is playing catch up. I think the two major layoffs that have been announced are totally unrelated. Convenant's have to do with national health care policy -- Fleming Foods have to do with the fact it built up a lost of business related accounts with Kmart. And Fleming is suffering as well as a result of that," said David Sharp, CEO of Market Lubbock Inc.

Market Lubbock Inc is an economic development business.

Market Lubbock Inc representatives say there are plenty of distribution warehouses that are expanding in Lubbock and those 190 people shouldn't have a difficult time finding a new job.

NewsChannel 11 was told that Fleming Foods also owns Rainbow Grocery store on 50th St. Fleming Foods Representative, Shane Boyd said they are trying to sell that grocery store.

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