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Shaw’s ex-owner cuts 1,100 jobs

NEW YORK — SupervaluInc. is eliminating about 1,100 positions nationwide, or 3 percent of its workforce, less than a week after the supermarket operator completed the sale of its Shaw’s and Star Market grocery chains to an investor group led by Cerberus Capital Management.

The company said will need significantly fewer corporate and store employees.

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Supervalu, which also sold off the Albertson’s, Acme, and Jewel-Osco chains, has struggled for years. The supermarket industry has been facing growing competition from big retailers like Target, drugstore chains, and dollar stores.

The cuts at Supervalu include current jobs and open positions that won’t be filled.

Supervalu has about 3,470 US stores and 35,000 employees. Workers whose jobs are cut will be offered severance and outplacement services.

Chief executive Sam Duncan said it was a difficult decision, but necessary to rebuild the business. Supervalu will focus on its Save-A-Lot stores and smaller regional chains.

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