Just days after the sale of five of its grocery chains was completed, Supervalu announced it will eliminate about 1,100 jobs, or approximately 3% of its workforce. The company said its remaining business will need fewer corporate and store support roles and functions.
Store-level and Save-A-Lot employees are not expected to be affected by the reductions.
On Thursday, March 21, Supervalu completed the sale of Acme, Albertson's, Jewel-Osco, Shaw's and Star Market to an investor group led by Cerberus Capital Management. Supervalu's remaining businesses include Save-A-Lot and smaller regional chains including Cub, Farm Fresh, Shoppers, Shop 'n Save and Hornbacher's. It also operates a wholesale grocery distribution business.
Showing posts with label Star Market. Show all posts
Showing posts with label Star Market. Show all posts
Thursday, March 28, 2013
Wednesday, January 16, 2013
Property worth $4.4 billion in Supervalu deal
In a Wall Street Journal story published earlier this week, Karen Short of BMO Capital Markets estimates the property value of the real estate bought by Cerberus Capital Management and its partners from Supervalu to be worth $4.4 billion. The partnership group agreed to pay $3.3 billion for Albertsons, Acme, Jewel-Osco, Star Market and Shaw's grocery stores.
According to the article, about half the 877 stores to be purchased are company-owned or subject to ground leases.
Cerberus' partners in the deal - Kimco Realty, Klaff Realty, Lubert-Adler and Schottenstein Real Estate Group - are all real estate companies, and are the same partners that teamed with Cerberus in 2006 to purchase 650 Albertsons stores. The group sold off some of those stores, closed others and kept several in operation. And they reportedly earned significant profits.
According to Kimco COO Mike Pappagallo, "Even though we recognize that the benefit here is primarily improving the overall operation of the business, we're comfortable with the fact that the real estate value we have, at minimum, supports the purchase price."
According to the article, about half the 877 stores to be purchased are company-owned or subject to ground leases.
Cerberus' partners in the deal - Kimco Realty, Klaff Realty, Lubert-Adler and Schottenstein Real Estate Group - are all real estate companies, and are the same partners that teamed with Cerberus in 2006 to purchase 650 Albertsons stores. The group sold off some of those stores, closed others and kept several in operation. And they reportedly earned significant profits.
According to Kimco COO Mike Pappagallo, "Even though we recognize that the benefit here is primarily improving the overall operation of the business, we're comfortable with the fact that the real estate value we have, at minimum, supports the purchase price."
Thursday, January 10, 2013
Supervalu sells Acme and four other brands; Kimco in on the deal
Supervalu announced this morning it has a deal in place to sell Acme and four other supermarket chains for $3.3 billion to a group led by Cerberus Capital. The Cerberus group includes Kimco, the largest shopping center owner in the U.S., and Lubert-Adler Partners of Philadelphia, among others. Albertsons, Jewel-Osco, Shaw's and Star Market stores will be sold along with Acme.
Save-A-Lot, which has several stores in the Philadelphia region, will remain with Supervalu, along with Cub Foods, Farm Fresh, Shoppers, Shop 'n Save and Hornbachers. The company's food distribution business will also remain as part of Supervalu.
The Cerberus group is paying $100 million in cash and will assume approximately $3.2 billion in debt. It will also offer to purchase 30% of what remains of Supervalu for $4 per share. As of 12 noon today, Supervalu's stock was listed at $3.34 per share.
Wayne Sales, who was named Supervalu CEO last July, will be replaced by former OfficeMax CEO Sam Duncan.
The deal, which is projected to close by the end of the first quarter, includes 877 stores. Cerberus currently owns the Albertsons stores operated by Albertsons LLC, and once the deal closes they will own all Albertsons stores.
Acme, once the dominant grocer in the Philadelphia region and still one of the area's largest employers, has over 13,000 local workers at more than 100 supermarkets. Joe DiStefano of the Philadelphia Inquirer points out in his blog post today that Lubert Adler purchased Mervyn's department store in the late 2000s, then shut down the chain after paying itself millions in dividends. Although a court ordered them to repay the chain's creditors, the firm still profited from the deal.
Save-A-Lot, which has several stores in the Philadelphia region, will remain with Supervalu, along with Cub Foods, Farm Fresh, Shoppers, Shop 'n Save and Hornbachers. The company's food distribution business will also remain as part of Supervalu.
The Cerberus group is paying $100 million in cash and will assume approximately $3.2 billion in debt. It will also offer to purchase 30% of what remains of Supervalu for $4 per share. As of 12 noon today, Supervalu's stock was listed at $3.34 per share.
Wayne Sales, who was named Supervalu CEO last July, will be replaced by former OfficeMax CEO Sam Duncan.
The deal, which is projected to close by the end of the first quarter, includes 877 stores. Cerberus currently owns the Albertsons stores operated by Albertsons LLC, and once the deal closes they will own all Albertsons stores.
Acme, once the dominant grocer in the Philadelphia region and still one of the area's largest employers, has over 13,000 local workers at more than 100 supermarkets. Joe DiStefano of the Philadelphia Inquirer points out in his blog post today that Lubert Adler purchased Mervyn's department store in the late 2000s, then shut down the chain after paying itself millions in dividends. Although a court ordered them to repay the chain's creditors, the firm still profited from the deal.
Wednesday, November 21, 2012
Supervalu freezes pay, lays off workers as buyer conducts due diligence
Supervalu, the troubled supermarket chain whose banners in the Philadelphia region include Acme and Save-A-Lot, announced last week it would implement a pay freeze for all employees at its corporate headquarters in Minneapolis, MN. The company said it will also reduce or suspend matching contributions to employees' 401(k) plans starting next year.
Earlier in the month Supervalu announced that the company would layoff 700 people, or approximately 4% of the workforce, at Shaw's and Star Market, both of which operate in New England.
In the mean time, Cerberus Capital Management, which is in talks to buy Supervalu, is still conducting its due diligence. The two companies are familiar with each other, as Cerberus joined Supervalu in buying a stake in Albertson's in 2006. According to published reports, Cerberus currently owns the entity that operates 205 Albertson's stores, while Supervalu operates 564 of them.
Supervalu, which operates Shoppers, Bristol Farms, Cub and Jewel-Osco in addition to the banners mentioned above, has lost more that $2.5 billion over its past two fiscal years, and recently reported its 14th straight quarterly sales decrease. It is the third largest grocery chain in the United States behind Kroger and Safeway.
It has been reported that private equity firms KKR and TPG Capital have expressed interest in purchasing Supervalu, as well as billionaire Ron Burkle.
Earlier in the month Supervalu announced that the company would layoff 700 people, or approximately 4% of the workforce, at Shaw's and Star Market, both of which operate in New England.
In the mean time, Cerberus Capital Management, which is in talks to buy Supervalu, is still conducting its due diligence. The two companies are familiar with each other, as Cerberus joined Supervalu in buying a stake in Albertson's in 2006. According to published reports, Cerberus currently owns the entity that operates 205 Albertson's stores, while Supervalu operates 564 of them.
Supervalu, which operates Shoppers, Bristol Farms, Cub and Jewel-Osco in addition to the banners mentioned above, has lost more that $2.5 billion over its past two fiscal years, and recently reported its 14th straight quarterly sales decrease. It is the third largest grocery chain in the United States behind Kroger and Safeway.
It has been reported that private equity firms KKR and TPG Capital have expressed interest in purchasing Supervalu, as well as billionaire Ron Burkle.
Thursday, January 12, 2012
Supervalu reports quarterly loss of $750 million
Supervalu reported a net loss of $750 million - or $3.54 per share - for the quarter ended December 3, 2011. The loss for the same quarter one year ago was $202 million. Sales for the quarter ended December 3 were $8.3 billion, compared to $8.7 billion for the comparable quarter one year ago.
Supervalu brands include Acme, Save-A-Lot, Albertson's, Cub Foods, Farm Fresh, Jewel-Osco, Shaw's/Star Market, Shop 'N Save and Shoppers.
Supervalu brands include Acme, Save-A-Lot, Albertson's, Cub Foods, Farm Fresh, Jewel-Osco, Shaw's/Star Market, Shop 'N Save and Shoppers.
Friday, October 21, 2011
Supervalu surprise - 2nd quarter profit!
Supervalu (Acme, Save-A-Lot) announced last week that it posted a $60 million profit for its second quarter, compared to a $1.47 billion loss for the same quarter a year ago. President and CEO Craig Heckert cited game-themed promotions that were successfully tested in Philadelphia-area Acme stores as a contributor to the company's success.
Despite the profit, same-store sales for the quarter were down 1.8% for the quarter compared to the same period one year ago, and total revenues fell 2.6% to $8.4 billion. Through the first half of their fiscal year, Supervalu's net income was $134 million on sales of $19.5 billion. One year ago, the company reported a $1.4 billion loss for the first half of its fiscal year.
Supervalu operates under many banners, including Acme, Save-A-Lot, Albertsons, Cub, Farm Fresh, Hornbacher's, Jewel-Osco, Lucky, Shaw's/Star Market, Shop 'N Save and Shoppers.
Despite the profit, same-store sales for the quarter were down 1.8% for the quarter compared to the same period one year ago, and total revenues fell 2.6% to $8.4 billion. Through the first half of their fiscal year, Supervalu's net income was $134 million on sales of $19.5 billion. One year ago, the company reported a $1.4 billion loss for the first half of its fiscal year.
Supervalu operates under many banners, including Acme, Save-A-Lot, Albertsons, Cub, Farm Fresh, Hornbacher's, Jewel-Osco, Lucky, Shaw's/Star Market, Shop 'N Save and Shoppers.
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