CHANDLER, Ariz. -- Bashas' here said last week it will supply groceries to 32 IGA stores in Arizona and New Mexico that were formerly supplied by Fleming Cos., Dallas.
y the IGA locations from its 810,000-square-foot distribution center here. "By meeting supply needs within our own area, we strengthen the regional food retailing network," said Wayne C. Manning, Bashas' president. "It's a winning resolution for vendors and suppliers, as well as customers in each neighborhood served by an IGA store."
The news was one of several developments last week in the diminution of Fleming, which is negotiating to sell its supermarket-distribution business to C&S Wholesale Grocers, Brattleboro, Vt. (see Page 1).
IGA, Chicago, also said last week it has granted distribution licenses to three additional wholesale companies to try to fill part of the gap left by Fleming as it has lost sales volume during the Chapter 11 process. The three companies are Affiliated Foods Midwest, Norfolk, Neb.; Associated Grocers of Florida, Miami; and Grocery Supply Co., Houston. Tom Haggai, president of IGA, told SN that the licenses were granted when Fleming informed IGA that it was putting its assets up for sale. The IGA license enables wholesalers to serve IGA retail customers, carry the IGA private label and participate in all IGA promotions, Haggai said.
Supervalu, Minneapolis, has added about $600 million in annualized volume from former Fleming customers, the company said last week. It plans to give a more detailed update this week when it releases its first-quarter earnings report, a spokeswoman told SN.
In other Fleming news, DoveBid, Foster City, Calif., said last week it will conduct its second Webcast auction of Fleming stores and equipment Tuesday. The principal items going up for bid are 23 supermarkets in Arizona, Minnesota, New Mexico, Texas, Utah and Wisconsin. Other items to be auctioned include tractors and trailers, as well as plant-support, material-handling and facility equipment.
Also, QVS, Milwaukee, said last week it has received permission from the U.S. Bankruptcy Court in Chicago to buy the last four Rainbow Foods stores in the Milwaukee area from Fleming. Thomas Halloran, QVS' Waukesha, Wis.-based attorney, told SN that QVS, which is comprised of local investors led by Wayne Becker, formerly with Roundy's, Pewaukee, Wis., and Don Kressin, formerly with Fleming, plans to operate the stores with full-service deli, bakery and meat departments along with a discount grocery area.