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The Kaiapoi supermarket that will now be demolished after Sunday's earthquake was just weeks away from completion of a $6m refit.
More than 80 workers at the Kaiapoi New World were told yesterday that they will be losing their jobs.
Foodstuffs South Island chief executive Steve Anderson said store owners Andrew and Jacqui Palmer broke the news to 34 full time and 52 part time staff yesterday afternoon.
The supermarket has been closed since the magnitude 7.1 earthquake struck the region on Saturday causing irreparable damage to the site.
Andrew Palmer told nzherald.co.nz that he was "completely devastated" that he wouldn't be able to re-open his store.
Palmer said there were "plenty of tears shed" when news of the job cuts was announced.
It was particularly hard to give, since the supermarket was just 12 weeks away from completion of a $6 million refit.
The supermarket is set to be demolished at a date to be determined. It would be rebuilt, but might take a year, said Steve Anderson.
Anderson said it was a distressing time for the staff and the owners and the company had pledged to do all it could to help.
"Everybody was just a mess," he said.
Anderson said staff would receive full pay for two months, which was significantly above what was in their contract, he said.
The company had also committed to finding them jobs within Foodstuffs if they wished to stay with the company, he said.
Progressive Enterprises has just announced it will try and accommodate as many staff as possible who have lost their jobs at the supermarket.
National Distribution Union general secretary Robert Reid said: "no doubt their own shop in Kaiapoi will be a lot busier now so they will need more staff," he said.
Reid said the union only had one member employed at Kaiapoi New World. The union praised the way Foodstuffs had handled the situation.
"This is the type of arrangement we are supportive of and hopefully it will be a model for other companies," he said.
All full time staff would each receive a $500 grocery voucher, while part-time staff would receive $250 from the Foodstuffs Community Trust.
- WITH ANDREW KOUBARIDIS
