Stop & Shop May Buy Norkus Foodtown

Stop & Shop has a tentative agreement to acquire Foodtown stores owned by Norkus Enterprises Inc.

Locations included are stores in Point Pleasant Beach, Long Branch, Neptune City, Manalapan and Raintree in Freehold Township, according to the vice president of Norkus.

Stop & Shop may close on the tentative deal in May, but no date has been set, Mark Norkus said Monday.

No Food Circus Foodtowns were involved in the transaction. The Route 37 West location in Toms River is a Food Circus-operated property.

Norkus Enterprises Inc. of Point Pleasant Beach  at Bellcrest Plaza on June 30.

The Norkus Foodtown in Freehold Borough would not be among those sold, Norkus said.

The tentative agreement calls for about 700 employees to be laid off in about 60 days, as was stated in a letter mailed to the homes of employees late last week, he said.

"That's the notice we're required by law to send out," he said.

When asked for an estimate of what percentage of employees will be hired back, he said more than 90 percent.

Employees of both Foodtown and Stop & Shop are represented by the United Food and Commercial Workers International Union (UFCW).

When asked if employees at Foodtown sites likely to be sold will still be represented by the same union, Norkus said yes.

When asked why employees will be laid off, Norkus said "because it's a different employer."

Norkus declined to explain why his company is selling the five locations or any other details, saying he cannot discuss it further because the deal is tentative.

Harvey Whille, president of UFCW Local 1262, said an attorney for Stop & Shop notified his office about the tentative agreement on Friday.

"It was a complete surprise, and  I've had a longstanding relationship with the Norkus family for many  years," he said. "I have a call in to them, but I  haven't gotten a call back yet."

He said he and other union officials are trying to gather information on the pending sale and what it means for employees.

"I want the employees to know we'll be there for them every step of the way," he said.

Stop & Shop currently operates locations on Route 37 East, Route 9 in the Tri Town Plaza and on Brick Boulevard and Old Hooper Avenue in Brick.