NEW YORK -- An investment firm that specializes in turning around struggling retail companies has bid to buy the Bi-Lo and Bruno's chains from Ahold USA, according to a report in the Birmingham News.
The paper identified Cerberus Capital Management here as one of at least two bidders for the chains, which Zaandam, Netherlands-based Ahold said it plans to sell by year-end. Cerberus recently agreed to acquire the Mervyn's department store chain from Target.
Joyce Smart, a spokeswoman for Bruno's and Bi-Lo, confirmed to SN that two bidders had emerged for the chains, although she declined to confirm that Cerberus was one of them. Asked if the bids were for both chains together, she said only that "it has been the priority of the company to sell the two chains as one unit."
She reiterated Ahold's previous statements that it was confident it would be able to sell both chains by the end of the year. "We have a couple of interested parties, and the whole process is moving along," she said.
Analysts have estimated that the two chains could fetch anywhere from $500 million to $1.5 billion.
Cerberus could not be reached for comment.
Although the newspaper reported that Bruno's was negotiating a new labor contract in advance of the possible sale, Smart said a sale would not be contingent on a new contract. The current pact expires Sept. 25.
Elaise Fox, president, United Food and Commercial Workers Local 1657, Birmingham, told SN negotiations for a new contract were "going quite well."
