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36 workers in Sydney will lose their jobs after Co-op Atlantic announced plans to close its distribution warehouse in Cape Breton.
The move is part of a major downsizing after Co-op was placed under creditor protection.
Co-op plans to eliminate a total of 400 jobs across Atlantic Canada in the coming weeks as it closes its remaining retail food and gas operations.
The restructuring does not affect member-owned Co-ops or the Co-op Country Stores.
Co-op owes creditors $51 million.
It says the court order gives it more time to restructure its operations, which may include selling more assets beyond a recent deal with Sobeys.
As part of that deal, the Co-op gas station in Glace Bay will be re-branded under the Shell banner.