Archive for Wednesday, December 9, 1998

TOPEKA DODGES FLEMING CUTS

December 9, 1998

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A bold restructuring plan announced Monday by Fleming Cos. won't affect the company's 120 Topeka employees, the company said Tuesday.

And Fleming's Kansas City distribution center will get additional work as it and seven others pick up the slack from seven centers being shut down.

Across-the-board staff reductions and other cost-cutting measures are to be taken, officials said. They declined to give any numbers.

Also Tuesday, Moody's downgraded its rating outlook to negative from stable for the grocery and distribution company. Moody's cited continued sales erosion and low profitability.

Monday, Standard & Poor's placed Fleming's credit and debt ratings on the S&P;'s Credit Watch list. S&P; officials said that although they thought the company was making some positive moves, it might be difficult for the restructuring to restore earnings and cash flow protection to levels needed to support its current S&P; ratings.

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