Virginia Beach distributor to close, laying off 104 workers

Atlantic Dominion Distributors, the Virginia Beach-based subsidiary of a 150-year-old parent company, is set to close in September. As a result, 104 people will be out of work, according to the state.

According to a news release from Atlantic Dominion Distributors, which is owned by Old Dominion Tobacco Co., it has sold its inventory assets to Southco Distributing, based in Goldsboro, North Carolina.

Atlantic Dominion informed the state of the closing of its wholesale and vending distribution operations in Virginia Beach and Williamsburg in a July 30 letter to the Virginia Workforce Network’s Rapid Response program. According to the Virginia Works Worker Adjustment and Retraining Notification (WARN) page, the layoffs will occur by Sept. 26.

Financial terms of the transaction were not disclosed, and the acquisition, which includes Atlantic Dominion’s operations in Virginia Beach and Hope Mills, North Carolina, is expected to close at the end of August, according to the companies’ announcement.

In Atlantic Dominion’s letter to the state, 98 employees of the Virginia Beach wholesale and vending divisions will be laid off, as well as six employees at three Williamsburg cigarette outlets. Eleven other employees in North Carolina also will be laid off.

Old Dominion Tobacco Co., Atlantic Dominion’s parent company, will continue to run its other businesses, including Hoffman Beverage, which distributes Anheuser-Busch products and other beverages; S&K Sales, a distributor to military commissaries and exchanges worldwide; and a real estate investment division.

Old Dominion Tobacco was established in 1875 as a cigar maker in Norfolk by founder Leroy Davis, whose descendant, Robin Davis Ray, is president of Atlantic Dominion Distributors. According to its website, Atlantic Dominion provides more than 10,000 food, drink and tobacco products to convenience stores and grocers, as well as vending machines and other outlets in Virginia, North Carolina and South Carolina.

Southco Distributing did not immediately respond to a request for comment Friday on the transaction and its plans for Atlantic Dominion’s operations.