Pennsylvania-based Penske Logistics LLC says a change in operation of a Kroger warehouse facility in Shelbyville will affect more than 500 employees. In a notice to the state, the company says Kroger, which owns the building, will take over operation of the facility in September.
Penske says it has performed warehousing services for Kroger at the 600,000-square-foot facility, located at 4301 N 125 W in Shelbyville, since 2013.
Penske currently employs 517 workers at the facility. The company says those employees will be permanently laid off, however there will be opportunities for continued employment with Kroger.
“Kroger and Penske will work together to communicate a transition plan and direction on applying for employment with Kroger,” Penske said in the WARN Notice. “Penske has been honored to provide service at this facility on behalf of Kroger, and will work diligently to ensure a smooth transition of the operation to Kroger as it takes over operation of the facility.”
Penske says many of the affected employees are represented by the Teamsters Local 135.
A spokesperson for Penske Logistics tells Inside INdiana Business the facility remains open and fully operational to serve the needs of Kroger’s stores. The transition of operations to Kroger will be effective September 11.