TAMPA, Fla. -- With talks proceeding rapidly to bring new ownership into the Kash n' Karry chain, the retailer's top executive said he doesn't foresee breaking up the operation into smaller parts.
"It would be very unlikely that the company could be broken up into smaller companies," Ronald Floto, president and chief executive officer, told SN. "We have our own distribution center and it's a highly interrelated company."
However, neither Floto nor Leonard Green & Partners, a Los Angeles investment group that controls Kash n' Karry, would name the companies that are interested in making an equity investment in the 101-store chain.
Late last month a spokeswoman for Leonard Green said four food-industry players had expressed interest in taking some type of ownership position in the retailer.
Floto said the negotiating "process is going forward" and is very active. A spokeswoman for Leonard Green said Floto is "close to the action" and has a good feel for the time frame required for any equity deal.
Both Floto and Leonard Green have been projecting the negotiations could yield results soon. In a recent filing with the Securities and Exchange Commission, Kash n' Karry disclosed a loss of $6.4 million in its second quarter ended Jan. 30.
