“The decision to close The Andersons stores was not easy for anyone involved,” said Pat Bowe, chief executive officer of The Andersons. “Choosing to cease a business that has spanned 65 years and employs about 1,050 people is tremendously difficult.”
The Andersons indicated the retail business has struggled in recent years, with the company’s Retail Group incurring pre-tax losses of more than $20 million during the past eight years. The company also has closed three stores during that period.
The full financial impact of the closing was not disclosed, but The Andersons said it expects to record pre-tax impairment charges on long-lived assets related to the Retail segment of approximately $6.5 million in the fourth quarter of 2016.
Additionally, the company expects to record a pre-tax charge in the range of $9 million to $14 million in the first half of 2017 for severance costs and other costs associated with the closing. The company also expects the full carrying value of its inventory may not be recoverable during the store liquidation process.
The Retail Group’s assets at their Dec. 31, 2016, carrying values included inventory and other assets of $21 million and long-lived assets of $9.8 million.