Performance Food Group cuts 98 jobs

Ninety-eight jobs will be cut at a local procurement business for food distributor Performance Food Group after the company decided to outsource its food-service purchasing functions.

The job reductions, effective April 17, will affect employees with Progressive Group Alliance LLC, Performance Food Group's independent purchasing organization, at the company's facility at 7420 Ranco Road off Hilliard Road in Henrico County.

Performance Food Group announced last week it was outsourcing the services to UniPro Foodservice Inc., based in Atlanta.

The cuts will not affect the company's Virginia Foodservice distribution operation at 7422 Ranco Road, Julie Mushisky, Performance Food Group's vice president of training and communications, said yesterday.

Affected employees will receive severance and outplacement services, she said.

The job cuts are expected to be permanent, but a few employees may be offered other positions.

Performance Food Group, based in Goochland County, is one of the nation's largest food distributors. The company distributes food and food-service products such as cleaning supplies to restaurants, hotels and other institutions.

Last May, the company was acquired for $1.3 billion by the private-equity firms The Blackstone Group and Wellspring Capital Management LLC.

Performance Food Group executives said in a statement that the deal with UniPro, the largest network of independent distributors in the United States, will give the company a greater breadth of supplier relationships and more purchasing leverage.

Contact John Reid Blackwell at (804) 775-8123 or .