Business

Sobeys president and CEO abruptly leaves company

Sobeys grocery chain and its parent company say their chief executive and president has left the organization — effective immediately.

Marc Poulin is being replaced on an interim basis by the CFO of Empire Company

Marc Poulin is being replaced as Sobeys chief executive officer and president on an interim basis by the chief financial officer of Empire Company, Francois Vimard. (Andrew Vaughan/Canadian Press)

The Sobeys grocery chain and its parent company say their chief executive and president has left the organization — effective immediately.

Marc Poulin is being replaced in those roles on an interim basis by the chief financial officer of Empire Company, Francois Vimard.

Poulin's sudden departure from the Empire organization follows a series of huge losses related to the acquisition of Canada Safeway as Sobeys expanded its position in Western Canada.

At the end of June, Empire Company Ltd. reported a loss of $942.6 million, or $3.47 per diluted share, compared with a net profit of $55.4 million, or 20 cents per share, in last year's fourth quarter.

Same-store sales at shops open for more than a year, an important metric in retail, decreased 1.8 per cent. However, excluding the negative impact of fuel sales and the retail West business unit, same-store sales would have increased 0.2 per cent, Empire said.

In June 2015, the Sobeys chain said it would cut roughly 1,300 jobs in 2016 and 2017 as part of a reorganization of its distribution centres.