Report: Supervalu considers selling its two largest retail chains - Bring Me The News

Report: Supervalu considers selling its two largest retail chains

Author:
Publish date:

Supervalu Inc. is moving toward a deal to sell Albertsons and Save-A-Lot, the grocer's two largest supermarket chains, to Cerberus Capital Management, Bloomberg News reports. Cerberus, a New York-based private equity firm, would also take an equity stake in what would remain of the Eden Prairie-based business, according unnamed people familiar with the negotiations. Cerberus hopes to finalize a deal before the end of the year.

The Star Tribune reports Supervalu declined to comment on the Bloomberg report, but a spokesperson said the company "continues in active discussion with several parties." Buyout group KKR & Co. and others have also expressed interest in Save-A-Lot.

Talks of a full takeover bid from Cerberus stalled last week after lenders balked at the financing terms.

On Monday, the Wall Street Journal reported that Cerberus was pursing an Albertsons-only deal.

Last month, the struggling grocery retailer announced that it is freezing wages for thousands of employees and cutting its 401K match.

Supervalu, which operates more than 2,400 supermarkets nationally including Cub Foods in Minnesota, put itself up for sale this summer after several quarters of falling sales.

Click here, to follow Supervalu’s stock performance.

Related

Supervalu to sell Midwest distribution center in Wisconsin

Eden Prairie-based Supervalu Inc. has inked a deal to sell its supermarket distribution center near Kenosha, Wis., to Meijer Inc., a Michigan-based retailer and grocer, the Milwaukee Journal Sentinel reports. Terms of the deal were not released. Supervalu is set to move out of the 580,000-square-foot facility by 2013.

Next Up