DERBY — Xpect Discounts will be laying off 58 employees, beginning around April 7, when it closes down it Pershing Drive operation ahead of a redevelopment project at the site.
In a notice filed with the State Labor Department, Kevin Yaugher, president and chief operating officer of Ohio-based Marc Glassman Inc., Xpect’s parent company, said layoffs would commence on April 7 or within 14 days after that date.
“Based upon economic forces, Marc Glassman Inc. was not able to renew its lease for the Xpect Derby location,” the company said in an email.
Its five other Connecticut stores are not affected, the company said.
Xpect’s Derby store is in the Red Raider Plaza, where a planned redevelopment could bring in a Walgreens Pharmacy and soften the blow to the community from job losses.
Mayor Anthony Staffieri said the jobs generated by Walgreens or other businesses moving in to the newly-renovated plaza would offset the lost Xpect jobs. “Hopefully the new store would hire some of those laid off,” he said.
“Yes, we are hoping those laid off will be absorbed into the new Walgreens,” said Sheila O’Malley, director of economic and community development, who added she was aware the layoffs were coming. “We never want to see anyone lose their job.”
According to Xpect’s mass layoff notice, 24 of the workers are cashiers and 19 work to keep the store stocked, while six supervisors will also be laid off.
Another food store could move in to the vacant space. “Most likely something like and Aldi’s,” the mayor said.
“Derby is a unique little city,” O’Malley added. “When one business closes another one opens.”
The redevelopment plan also calls for the demolition of a majority of the existing structures at the plaza.
This includes tearing down a portion of the Xpect building to make room for new storefronts where existing plaza stores — including Suds Laundromat, Crown Fried Chicken and N&S Smoke Junction — would be relocated. “That’s our understanding,” said Steven Jalowiec, Planning & Zoning member.
The new Walgreens store, which would be located at the corner of Pershing Drive and Division Street, would be about 14,500 square feet and would have a drive-thru window for prescriptions. Walgreens has 91 stores in Connecticut. The company did not immediately return inquiries.
Staffieri said construction of the store could begin as early as summer. “It’s just how fast Walgreens wants to move in,” he said.
But Jalowiec noted the proposal has yet to receive any city approvals or permits.
“We are just now having public hearings on it,” he said. The next hearing is planned for Feb. 21, he said, adding he encouraged residents to come and express their views on the entire proposal.