TSN to Acquire McLane Warehouse

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TSN to Acquire McLane Warehouse

RICHMOND, Ind. -- A Colorado-based distribution company plans to buy the McLane Indiana warehouse and hire back much of its workforce.

"We are intending to purchase that building from McLane. We are in the process of negotiating with them and talking to the banks," said Ted Nelson, president of Longmont, Colo.-based TSN Inc.

McLane announced in April that it is closing operations at the end of this week at the Richmond, Ind. facility, putting 136 employees out of work. The Temple, Texas-based distributor, owned by Wal-Mart Stores Inc., laid off 39 workers in Richmond earlier this year, according to The (Ind.) Palladium-Item.

TSN would hire about 60 workers initially at the same wage scales McLane was paying. "Our intention is to hire all the employees from there," Nelson said. "We're excited about keeping as many people there as we can. We're trying to do it as quickly as possible."

Nelson anticipates the deal can be completed within 60 days. TSN had been looking for a site in the region for 18 months, the report said. the company specializes in delivering convenience store supplies to McLane properties. Products include paper towels, tissues, soap, can liners, cleaning supplies, carryout sacks and deli containers. The Richmond operation has been serving about 700 convenience stores in the region, mainly in Indiana and Ohio. Major customers include Village Pantry and United Dairy Farmers, the report said.

The warehouse also would be used for the redistribution of dry goods and frozen foods, Nelson said. TSN runs a 180,000-square-foot distribution site that employs 150 in Colorado. Nelson and his partner, Izzy Salazar, have operated TSN since 1990. They have worked in the convenience store industry since the 1970s.

Wal-Mart is in the process of selling McLane, the leading c-store distributor with 36 foodservice and grocery centers nationwide, to Warren Buffet's Berkshire Hathaway. A deal reached May 2 is subject to regulatory approval.

At a Glance
TSN Inc.
* Headquarters: Longmont, Colo.
* Owners: Ted Nelson and Izzy Salazar
* Web site: www.tsndist.com