Supervalu to open books for potential buyers

The troubled Eden Prairie-based grocery-store chain is expected to provide prospective buyout firms financial information later this week, the Wall Street Journal reports. Last week, Supervalu hired Goldman Sachs to explore selling either part or all of its supermarket operations after it reported a plunge in quarterly profit.
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The troubled Eden Prairie-based grocery-store chain is expected to provide prospective buyout firms financial information later this week, the Wall Street Journal reports.

Last week, Supervalu hired Goldman Sachs to explore selling either part or all of its supermarket operations after it reported a plunge in quarterly profit. The company also suspeneded its dividend payment and saw its stock value fall to an all-time low.

Grocery supplier C&S Wholesale Grocers Inc. is reportedly interested in buying the distribution business of Supervalu Inc., according to the Chicago Tribune.

Private-equity firms Cerberus Capital Management, Kohlberg Kravis Roberts & Co. and TPG Capital are also expected to be approached.

Meanwhile, a shareholder at the annual Supervalu meeting Tuesday threatened to file a class-action lawsuit against the company, Supermarket News reports. He criticized Craig Herkert, chairman and chief executive officer, for taking a $950,000 bonus at the same time the company is eliminating the dividend.

Supervalu is the third-largest U.S. grocery chain with brands such as Albertsons, Cub Foods, Jewel-Osco and Save-A-Lot.

Last month, Supervalu announced plans to eliminate 2,200 to 2,500 jobs at all 247 Albertsons stores in California and Nevada.

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Supervalu Inc., owner of Cub Foods and other prominent chains, has posted a loss of $111 million in its fiscal second quarter, compared to a profit of $60 million a year earlier, the Star Tribune reports. The struggling Eden Prairie-based supermarket chain also reported its same-store sales fell 4.3 percent from the same period a year ago.

Supervalu fires CEO, names replacement

Supervalu has pushed out CEO Craig Herkert from the struggling Eden Prairie-based supermarket chain, the Associated Press reports. Chairman Wayne Sales will take on the roles of president and chief executive officer as Supervalu explores a possible sale of its operations following disappointing quarterly results.

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Shares of the Eden Praire-based grocery retailer fell to an all-time low Thursday following news late Wednesday the company is exploring options that include putting itself up for sale. Supervalu is the third largest grocery company in the country, but has not turned an annual profit in three years.

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