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Fri Mar 3, 2017, 12:50 PM

Warehouse operator that replaced union workers sues Schnucks


XPO Logistics is laying off 204 employees in St. Louis County amid a dispute between the company and Schnuck Markets.

Maryland Heights-based Schnucks, which has 100 grocery stores in five states, hired Greenwich, Conn.-based XPO to staff the grocer’s 915,000-square-foot warehouse in Kinloch that opened in mid-2016.

Last month, XPO sued Schnucks for breach of contract, alleging Schnucks failed to pay it more than $1.3 million. XPO also alleged the Kinloch building’s opening was rushed and it was unable to properly perform its warehouse management services.

Schnucks has denied the allegations in XPO’s lawsuit and told the Post-Dispatch it terminated the contract with XPO because XPO failed to operate the warehouse properly under the terms of its contract.

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