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December 27, 2017 12:45 PM, EST

Penske to Assume Control of Kroger Distribution Center in Texas

Kroger Store Virginia Retail/Flickr

Penske Logistics will officially take over control of a Kroger distribution center in Texas on Dec. 29, the third-party logistics company told Transport Topics.

The supermarket ended a contract with SouthStar and signed a deal with Penske, which was first revealed in a Worker Adjustment and Retraining Notice filed with the Texas Workforce Commission on Nov. 17.

Nearly 700 union employees at the Keller facility were due to be laid off.

Penske reached agreements with the International Brotherhood of Teamsters and United Food and Commercial Workers on Dec. 20 to allow union labor into the warehouse. The labor agreements preserved about 500 unionized jobs at the facility and there will be a total of about 600 workers, Penske spokesman Randy Ryerson said.

He said the 3PL is interviewing, recruiting and hiring workers from the existing workforce as well as outside applicants.

Penske Logistics ranks No. 12 on the Transport Topics Top 50 list of the largest logistics companies in North America.