About 173 employees in the corporate office of Price Savers Wholesale Warehouse, 310 W. Bearcat Drive, are being interviewed about the possibility of moving to Denver for jobs with Pace Membership Warehouse Inc., which recently purchased the Salt Lake-based chain in a cash transaction.
A story last week in the Deseret News quoting Price Savers founder and president Thomas R. Grimm as saying the 3,300 employees would have jobs with Pace brought calls to the newspaper from employees who said the statement was misleading.In the story, Grimm didn't differentiate between warehouse employees and employees in the corporate office, but since has acknowledged the jobs of the 173 people in the corporate office could be in jeopardy.
Tom Vander Ark, vice president of strategic planning and marketing for Pace, said there will be a transition period until mid-January to allow a team to develop a transition plan. Part of that plan is interviewing each corporate-office employee for positions that will be open in Denver as a result of the acquisition.
Grimm said the corporate office will be closed in April, but Vander Ark said no final determination has been made on when the office will close. Vander Ark said the interviewing will continue until mid-January and by that time the transition team will be in place to make decisions.
Pace purchased the 17 Price Savers warehouses in Utah, California, Arizona, Alaska and Washington that will bring to 78 its number of warehouses in 20 states, Vander Ark said.
He said the warehouses in Utah will be expanded to include bakeries and the fresh produce sections will be enlarged, resulting in additional jobs. Price Savers are located at 3280 S. 900 West, South Salt Lake; 6525 S. State, Murray; and in Ogden and Provo.
Part of the transition process, Vander Ark said, is determining where Pace will purchase the items it sells. Grimm said he purchased millions of dollars worth of products annually from Utah firms and Vander Ark said he doesn't anticipate any merchandising or purchasing changes even though the items will be ordered from Denver.
Vander Ark said Pace officials are excited about the acquisition because Price Savers has developed a strong presence in the West and has high volumes and a strong operation staff. "We anticipate a smooth transition," he said.
Grimm founded the company in March 1984 and this year sales are expected to reach $850 million.