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Co-op Atlantic board recommending exit from food and gas business

The Co-op Atlantic gas station on Vaughan Harvey Boulevard in Moncton. The board is recommending the sale of gas stations and grocery stores to Sobeys. Alex Abdelwahab/Global News

MONCTON – The Board of Directors of Co-op Atlantic is recommending its member-owners move away from its grocery and gas wholesale business and sell the assets to Sobeys.

Since Co-op Atlantic grocery and gas locations are operated by individual owners, this proposal does not necessarily mean that Co-op Atlantic locations would change names. However, they will buy their products and gas from Sobeys instead of the Co-op, spokesperson Monique Bourque told Global News.

“This recommendation follows several months of operational and financial review which determined that this is the best course of action for long-term viability of member-owners,” the board wrote in a press release that was issued Saturday.

The proposal would see Sobeys purchase most of the corporate food and gas retail sites and wholesale assets, while individual store owners would negotiate their supply agreements with Sobeys.

The member-owners must vote on the recommendation before May 12.

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Co-op Atlantic would continue to operate its home energy and agriculture divisions.

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