FLEMING CUTTING 200 JOBS IN OKLAHOMA CITY, DALLAS
eliminate 100 jobs at its shared-services center in Oklahoma City and another 100 positions at its headquarters here. The layoffs in Oklahoma City, formerly the company's base, and Dallas began earlier this month and will be completed within eight weeks, a company spokesman told SN. The workers will not receive severance packages because Fleming is currently in the midst of Chapter 11 bankruptcy reorganization, the spokesman noted.
FTC CLEARS SALE OF SIX MORE FOOD 4 LESS STORES
MODESTO, Calif. -- The Federal Trade Commission approved the sale last week of six Food 4 Less stores in Northern California by Fleming, Dallas, to Save Mart Supermarkets here. However, it blocked the sale of three other locations that were originally part of the deal without any explanation, Bob Piccinini, chairman and president of Save Mart, told SN. With Fleming operating under Chapter 11 since April 1, the sale of the six stores must still be approved by the U.S. Bankruptcy Court. Piccinini said he wasn't sure when that hearing will occur, although he said it's likely to be sometime in June. Earlier this year Save Mart won FTC approval to acquire 17 of 26 Food 4 Less stores while the commission studied the other nine.
REPORT: NASH FINCH DISTRIBUTING TO SUPER KMARTS
MINNEAPOLIS -- Nash Finch here has gained the consumables distribution business at 20 to 25 of the roughly 60 remaining supercenters operated by Kmart Corp., Troy, Mich., according to published reports. The reports cited an industry analyst as saying that Nash Finch stands to gain $100 million to $150 million in sales from distributing to the Super Kmart stores. Nash Finch could not be reached for comment last week.
COURT APPROVES EAGLE FOOD FINANCING
MILAN, Ill. -- Eagle Food Centers here said last week it has received final court approval for its $40 million debtor-in-possession financing facility. The facility calls for Congress Financial Corp., New York, which has provided the company's revolving credit facility since 1995, to provide Eagle with $40 million in post-petition financing to continue funding obligations to employees and suppliers, as well as other day-to-day company operations. Representatives of Eagle's official committee of unsecured creditors were actively involved in recent court hearings and supported Eagle before the court, the company said. On April 7, Eagle filed a Chapter 11 petition with the U.S. Bankruptcy Court in Chicago.
