TRENTON — Woodman’s Food Market and the Woodman Center for the Arts closed on Tuesday amid soaring competition from new companies and a rising cost of goods and services, leaving the market’s most popular brand in the red.
The company, which had faced pressure to raise its stock price to attract investors amid a recent drop in profits, closed at $24.80 a share.
It was the first share price decline for Woodman since it went public in 2013.
A spokeswoman said the company would cut about 5% of its workforce and trim spending.
Woodmores shares fell more than 5% to $16.85, down from a higher $18.25 before the announcement.
Some analysts saw a drop in profit in its second quarter and expected the stock to fall again in the third quarter.
On Tuesday, Woodman said it would be cutting 3,000 jobs by the end of the year and closing about 20 stores, mostly in the New York metro area.
In the past three years, Woodmores has lost about 3,500 employees.
Woodman has said it is on track to close 2,000 stores.
“The challenges we’ve faced over the past few years are largely attributable to a combination of factors, including higher consumer costs, higher food prices, and the increasing number of competition-driven businesses,” Woodmiles CEO Andrew Kliman said in a statement.
Kliman had hoped to raise more money from the sale of shares in the company, but the stock fell to $17.40.
The stock price was up about 11% in after-hours trading.
While Woodmills is one of the nation’s largest retailers, it has struggled to survive as a result of the recession, which has affected its sales.
The company has struggled with its reliance on a single-store model and low-margin, low-profit operations, which have led to more than a $400 million charge last year for operating losses.
Woodmowers has been working on a plan to reduce its workforce in New York and other major cities, and it has been cutting jobs in other areas, such as in New Jersey.
Its shares closed at about $18 a share, compared with $15.30 in early afternoon trading.
Woodman is owned by the family of Bob Wood, who helped found the company and is a billionaire.