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NEWS WATCH

The Federal Trade Commission has decided not to release Vons Cos., Arcadia, Calif., from a 1992 order requiring the chain to retain prior approval from the agency before acquiring stores in 21 California cities and Las Vegas. The FTC said it couldn't withdraw its order because Vons is still actively seeking to acquire a location in Grover Beach, Calif., from Smith's Food & Drug Centers, Salt Lake

The Federal Trade Commission has decided not to release Vons Cos., Arcadia, Calif., from a 1992 order requiring the chain to retain prior approval from the agency before acquiring stores in 21 California cities and Las Vegas. The FTC said it couldn't withdraw its order because Vons is still actively seeking to acquire a location in Grover Beach, Calif., from Smith's Food & Drug Centers, Salt Lake City. A California state antitrust action has already deemed that acquisition to be anticompetitive and has ordered Smith's not to sell the site to Vons. The FTC initially issued its order to avoid what it saw as the potential for Vons to dominate those markets and lessen competition.

Shop Cos., Quincy, Mass., to June 14 (from May 31) to give the Federal Trade Commission more time to review the transaction.

Byerly's, Edina, Minn., has opened its second Chicago-area store, in Schaumburg, Ill. It plans to build seven to 10 stores in the market in the next few years. Dale Riley, president and chief operating officer, said sales at the first Chicago store, in Highland Park, Ill., are "exceeding all early expectations."

Ralphs Grocery Co., Compton, Calif., reported a pretax loss of $32 million for the first quarter ended April 21 vs. a $283 million loss a year ago. Sales were up 97.4% to $1.23 billion, due mainly to the 174-store addition from Food 4 Less. Same-store sales dipped 0.2%. Chief Executive Officer George Golleher said the loss was, in part, because the Ralphs-Food 4 Less consolidation is taking longer than expected. Also, Ralphs has raised a new debt facility that will increase its high-yield debt by $100 million and reduce its term-loan and credit-facility bank debt by $100 million, providing more liquidity for growth, said Greg Mays, executive vice president and chief financial officer.

Certified Grocers of California, Los Angeles, has entered an agreement in which RHL, a holding company owned by locally based entrepreneur Richard H. Loeffler, will take over operating management of Hawaiian Grocery Stores, a $60 million Honolulu-based wholesale arm of Certified. Loeffler will be HGS' president and chief executive. He has purchased 100% of HGS' common stock and has moved RHL's base to Honolulu.

Pathmark Stores, Woodbridge, N.J., reported a net loss and a sales decline in the first quarter ended May 4. Sales in the 13-week period fell to $961.1 million from $1.03 billion a year before. Same-store sales decreased 3.5%. Compared with net earnings of $2.3 million a year ago, Pathmark had a net loss of $5.5 million in the quarter, which included a $600,000 extraordinary item representing the loss on early extinguishment of debt, according to the company.

Target Stores, Minneapolis, has no plans to convert more discount stores to supercenters this year, a spokeswoman said. It reopened a discount store in Mason City, Iowa, as a SuperTarget, its first such conversion, in April. Four more SuperTargets are planned this year.