Plumgood Food to go out of business

Delivery service falls victim to economy's slide

Email | Print By E. Thomas Wood

The purple trucks will roll no more.

Nashville grocery delivery venture Plumgood Food announced today that it will cease operations as of Friday, Dec. 5. Co-founder and CEO Eric Satz sent an e-mail to customers with the news.

"Today’s economy has taken its toll on our business the same way it has on many other businesses our size," Satz wrote. "The primary driver for our customer was always convenience. This consumer value proposition becomes far less compelling in an environment where the perceived value of one’s time declines as significantly and rapidly as it has over the past few months."

A source close to the company told NashvillePost.com that Plumgood posted strong growth from June to September but then hit a plateau. Weekly deliveries have declined recently, though most of the lost accounts were small ones inherited when Plumgood acquired the home delivery business of Purity Dairies in March of this year.

"We didn’t lose," the insider said. "But the clock ran out while the other team had more points."

About 40 employees will be affected by the shutdown. Satz encouraged customers to contact him about hiring the personnel.

Plumgood began offering home delivery of groceries in 2004. Its purple trucks soon became a familiar sight on Nashville streets.

On its Web site, Plumgood has announced a liquidation sale that will involve discounts of 25 to 50 percent for the coming week.