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Supervalu Inc. has entered into three separate definitive agreements to sell 21 of its 38 Farm Fresh Food & Pharmacy (“Farm Fresh”) stores for approximately $43 million in cash to three different retailers: Harris Teeter, Kroger Mid-Atlantic Division, and Food Lion. Supervalu is also continuing discussions and exploring potential transactions to sell the remaining Farm Fresh stores to current and prospective wholesale customers and certain Farm Fresh employees.
“Over the past two years, we’ve been working diligently and rapidly to transform our business to become the wholesale supplier of choice for grocery retailers across the United States,” said Mark Gross, Supervalu’s President and CEO. “In 2016, we sold Save-A-Lot and its network of approximately 1,350 retail locations. Last year, we acquired Unified Grocers and Associated Grocers of Florida, which when combined with substantial organic growth, added more than $5 billion in run rate sales to bring our core wholesale business to nearly $13 billion. Exiting the Farm Fresh banner will enable us to allocate greater resources and energy toward the strategic growth of our wholesale business. We also continue to aggressively pursue other important initiatives, including the monetization of real estate through sale leaseback transactions and cost reduction across the company. We are confident our efforts are driving growth and enhancing our competitive position.”
Gross continued, “This decision was not taken lightly given the impact on our employees and the communities we serve, but we strongly believe this decision is in the best long-term financial and strategic interest of our business. Our leadership team and board of directors remain committed to taking proactive steps to transform our business and drive stockholder value.”
“We are thankful for the tremendous service our employees have delivered at Farm Fresh through the years, and are grateful for the opportunities we’ve had to share in the lives and special events of our customers and employees across the Hampton Roads, Richmond, Williamsburg, and Elizabeth City communities,” said Anne Dament, Executive Vice President, Retail, Marketing and Private Brands. “We are working with the buyers to ensure a smooth transition and we expect them to offer positions to many Farm Fresh employees. In addition, we plan to offer eligible employees severance and other job transition support.”
In summary, the agreements provide for:
• Ten stores being sold to Harris Teeter, including six in-store pharmacies and three fuel centers.
• Eight stores being sold to Kroger Mid-Atlantic Division, including eight in-store pharmacies and four fuel centers.
• Three stores being sold to Food Lion, including three in-store pharmacies.
The transactions, which were unanimously approved by Supervalu’s board of directors, are currently expected to close in May 2018, subject to customary closing conditions. Supervalu is also working with a third party to liquidate the inventory at these Farm Fresh stores.
With regards to Farm Fresh pharmacies not included in these three sale transactions, Supervalu has entered into agreements to transfer pharmacy prescription files to other pharmacies in the area. Prescription files from ten pharmacies will be transferred to Rite Aid and four to CVS Pharmacy.
Founded in 1957, Farm Fresh has served Virginia and North Carolina for 60 years, and today employs approximately 3,300 associates.
Kingston-Miami Trading Company President Patrick Cha-Fong (pictured) has been invited to participate in a program and reception with President Donald Trump and top Republican Party leaders at a gathering to be held, Saturday, March 3, at The Mar-A-Lago Club in Palm Beach, Florida.
This tight-knit gathering of the nation’s top leaders will provide a unique opportunity for those in attendance to sit down and discuss how to continue moving the Republican Party forward and further advance President Trump’s vision to Make America Great Again.
A prominent member of the Food Industry, Cha-Fong and his wife Christine, founded the Miami-based leader in Caribbean and ethnic foods 35-years ago. The company has grown to become a world leader within its ever-expanding category. Cha-Fong’s Jamaican/Chinese/Canadian/American heritage is a strong asset by which his attendance at the event reflects the diversity within today’s business world.
“I look forward to discussing with the President and others gathered for this event my ideas and those of others who have come together with the mutual goal of how to make America great, again.” Cha-Fong told TODAY’S GROCER.
Cha-Fong had been active in politics for many years prior to (then) President Ronald Regan conferring on him life-membership in the Republican National Committee in 1980. In addition to his membership in the RNC, today, Cha-Fong, is a member of President Trump’s Presidential Advisory Board.
President Trump has gone on record as saying that he considers Cha-Fong’s support vitally important to the Party winning in 2018 and promoting the President’s policies that will create a safer, stronger and more prosperous country.
Cha-Fong has a long history of both personal and business success. His is truly an American success story. Within the world of finance, Cha-Fong is believed to be among a select, small group of individuals that can boast the highest credit scores. Cha-Fong achieved, six times running, a FICO Score of 850, the highest achievable rating.
Kingston-Miami Trading Company distributes many of the leading brands within the all-important gourmet/ethnic niche: Jamaican Country Style, Caribbean Exotic Gourmet, Mrs. Chris, Sak Pasé, Chef Pearl Chang, Lion of Judah, Jamaicaway, and a number of highly-popular nationally branded products. K-MT products can be found across the United States and throughout the Caribbean. They are sold by many of the leading retailers and are available online via Amazon.