Ahold announces restructuring for U.S. Foodservice
Charges expected to range between USD 50 million and USD 60 million.
02/01/06 Ahold has announced the amount of restructuring and related charges that it expects to record in the fourth quarter of 2005 at its U.S. Foodservice subsidiary related to the long-term strategy for U.S. Foodservice as announced on November 29, 2005.
The charges are expected to range between USD 50 million and USD 60 million and reflect expenses associated with planned workforce reduction, asset impairments, lease expenses related to facilities to be exited, termination of contractual obligations and other miscellaneous charges. The workforce reduction initiative will result in the elimination, on a net basis, of nearly 700 positions at the company's facilities across the United States, including approximately 500 administrative positions.
The amounts above are preliminary and may be subject to change.
