In a move to cut costs and consolidate operations in its $239 million merger with Smith's Food and Drug Co., Smitty's Super Valu will close its headquarters here and lay off about 170 employees.
The employees were notified of the decision Monday and will get a minimum severance of four weeks' pay, according to Smitty's president David Green.The closing will consolidate such operations as accounting, human resources and other support functions.
Store employees won't be affected by the headquarter layoffs, however.
Smitty's has 26 stores in the Phoenix metropolitan area plus three in Tucson.
Salt Lake City-based Smith's has 30 stores in Arizona, including 20 in the Phoenix area.
Smitty's merger with Smith's was announced in January. The transfer of operations to Smith's is expected to begin in early May and be completed by the end of July.