Dive Brief:
- Ahold Delhaize USA and supply chain solutions company Americold Realty Trust entered an agreement on July 21 to wind down operations at a distribution center in Lancaster, Pennsylvania, and halt plans to open one in Plainville, Connecticut, according to a Securities and Exchange Commission filing from Americold.
- In an emailed statement to Grocery Dive on Tuesday, ADUSA said the company plans to remain in the Lancaster facility through the end of this year and “will share more details on its transition in the near future.” The company added there are no changes to facility operations at this time.
- The facilities had been part of Ahold Delhaize’s multi-year efforts to switch to a self-distribution model.
Dive Insight:
ADUSA and Americold first partnered in 2020, announcing plans to build two fully automated frozen warehouses as part of the grocery company’s supply chain transformation plan.
Now, the companies are working together to wind down operations at the Lancaster facility by Dec. 31, while the Plainville center “will be idled immediately,” according to the SEC filing. ADUSA and Americold have agreed to expand and renew business in other parts of Americold’s network, according to the filing.
Americold said in the filing it expects to record a non-cash impairment charge of approximately $305 million to $320 million for the two facilities, which it expects to sell.
Despite no longer moving forward with the Lancaster or Plainville automated distribution centers, ADUSA still has plans to introduce similar high-tech facilities. In October 2025, the grocery company made an $860 million investment to build an automated distribution center in Burlington, North Carolina. At the start of this year, Blackstone Credit & Insurance invested $475 million in the project. The ADUSA facility is expected to start servicing stores in 2029.
