Skip to main content

Sale of Cub Foods pushed back 2 years

Cub Foods' owner says now is not the right time to sell the stores.

The sale of Cub Foods is being pushed back for about two years, its owner said in an earings call Wednesday.

United Natural Foods Inc. (UNFI) bought Minnesota-based SuperValu (the owner of Cub Foods) in October 2018 with the intention of selling off the grocery stores. 

That sale was slated to happen sometime this year but with the COVID-19 pandemic, UNFI has decided to put the sale on hold for two years, according to a The Motley Fool transcript of Wednesday's call.

The pandemic has caused a recession and has forced more people to make food at home (a boon for Cub Foods and other grocery stores). Plus, UNFI said it would be "immoral" to sell the stores now, potentially creating a food desert in communities during this time of need, Supermarket News reported

"We're pleased with the cash being generated by Cub and happy to have the flexibility to sell Cub's owned real estate at a more advantageous time," CFO John Howard said in the call.

Meanwhile, UNFI said that it will spinoff Cub Foods into a separate entity. This is intended to make things easier when it comes time for UNFI to sell the stores.

Sign up for our BREAKING NEWS newsletters

"As an interim step, we’re in the process of separating Cub from UNFI, which means Cub will operate more as a freestanding entity than it does today, with its own dedicated resources once the separation is complete,” UNFI Chairman and CEO Steven Spinner said in the call.

UNFI stressed it doesn't want to own retail forever, but it'll sell the stores when the time is right. 

The company also released its third-quarter results Wednesday, reporting a net sales of nearly $6.7 billion for the 13-week period that ended May 2 – up 12 percent over last year. 

Next Up

FLickr - crime scene tape do not crozz

Charges: MN teen shot mom after dispute over meth

The girl's mother said there had been a dispute over methamphetamine.

bad roads, blizzard

No travel advised: High winds, whiteout conditions in NW MN

Zero visibility in parts of greater Minnesota Tuesday night.

holy angels high school j nelson

Update: Holy Angels evacuated over bomb threat, school says

Someone left a voicemail early Tuesday suggesting there was an explosive device.

radio station, microphone

Convicted stalker charged with harassment of another DJ at The Current

He pleaded guilty to similar charges involving the DJ's colleague back in 2015.

Mall of America exterior Tyler Vigen Wikimedia COmmons

10 new shops, food stops at Mall of America

Donuts, K-fashion, model cars — the new tenants cover a lot of bases.

Gophers basketball

Gophers fall below roster minimum, postpone Penn State game

It is "due to internal COVID-19 protocols within the Golden Gopher program."

Raheem Morris

Report: Vikings request interview with Rams' Raheem Morris

Morris was once the youngest head coach in the NFL at 33 years old.

train crossing S Boardman Ave, New York Mills, Minnesota - August 2013 crop GSV

Sheriff: Drunk driver crashed trying to 'beat the train'

The BNSF train slammed into the side of the driver's car.

ambulance

Man run over after parking dispute leads to road rage crash

The two groups fought about parking prior to the crash.

hwy 41 engler boulevard crash crop

Deadly crash shuts down small stretch of Chaska highway for hours

A driver crossed over the center median and hit another vehicle.

covid test 6

You can now order 4 free at-home COVID tests from the government

Tests will ship for free within 7-12 days, according to the White House.

covid-19

Minnesota's COVID-19 update for Tuesday, January 18

Minnesota has reached 11,000 COVID-19 deaths.

Related

Cub Foods is set to be sold early next year

The grocery chain's parent company is looking to offload the store network.

With new owner planning a sell off, who will buy Cub Foods?

Current owner Supervalu is being bought for almost $3 billion.

Cub Foods Broadway

Cub Foods commits to rebuilding its 2 riot-damaged Minneapolis stores

It also intends to open temporary stores at both locations to address food insecurity.

Cub Foods, Kowalski's giving workers a raise during COVID crisis

Grocery store workers are now considered emergency workers during the COVID crisis.

Report: Cub Foods owner considering possible sale

Supervalu is assessing its options, according to Bloomberg.

cub foods

Cub Foods launches its own online ordering for grocery delivery, pickup

Previously, Cub relied on Instacart to fulfill delivery orders.