Andersons To Exit Retail Business, Incur Charges - Quick Facts

(RTTNews) - Andersons, Inc. (ANDE) said it plans to exit the retail business and close its remaining four retail stores in the second quarter of 2017. The retail closings will have no impact on the company's grain, ethanol, plant nutrient and rail operations.

The closing will eliminate approximately 650 positions in the Toledo area and 400 positions in Columbus, of which approximately 75 percent are part-time positions. The company will provide employees with severance packages and outplacement services to assist them in their career transitioning.

CEO Pat Bowe said, "The decision to close The Andersons stores was not easy for anyone involved. Choosing to cease a business that has spanned 65 years and employs about 1,050 people is tremendously difficult."

During the past eight years, Andersons' retail business has incurred pre-tax losses, including previous asset impairments, of more than $20 million and closed three stores.

The company has not yet determined the full financial impact of this closure. However, it expects to record pre-tax impairment charges on long-lived assets related to the Retail segment of approximately $6.5 million in the fourth quarter of 2016.

Andersons also expects to record a pre-tax charge in the range of $9 to $14 million in the first half of 2017 for severance costs and other costs associated with the closure. In addition, the company anticipates that the full carrying value of its inventory may not be recoverable during the store liquidation process.