AHOLD AGREES TO SELL SPANISH OPERATIONS TO PERMIRA
aid it has agreed to sell its Spanish retail operations to the Permira Funds, a European private equity firm with offices in Madrid, for 685 million euros, or about $841 million. Ahold, which also is seeking to sell its Bruno's and Bi-Lo chains in the United States, said last year it would seek to divest the Spanish business. The Spanish operations include almost 600 stores under several different banners. Ahold said it expected to complete the transaction, subject to the fulfillment of certain conditions, by the end of the year.
PATHMARK SECURES NEW $250M CREDIT FACILITY
CARTERET, N.J. -- Pathmark Stores here said it has entered into a new $250 million, five-year credit facility led by Fleet Retail Group. The facility consists of $180 million revolving credit and a $70 million term loan. Pathmark said the new facility replaces a prior five-year lending agreement and seven-year term loan. Due to revisions in Pathmark's earnings guidance, it was likely the retailer would not have been in compliance with certain covenants of the prior agreement for the four quarters ended Oct. 30. The new facility will lower borrowing costs, increase flexibility and strengthen liquidity, Eileen Scott, Pathmark's chief executive officer, said in a statement.
WINN-DIXIE SEES INSURANCE COVERING STORM DAMAGES
JACKSONVILLE, Fla. -- Winn-Dixie Stores here said its liabilities for losses from the recent series of hurricanes in the Southeast would be limited to its deductible of $10.3 million. The company, whose stock has been trading near 10-year lows in recent weeks, said it expects windstorm insurance will cover the rest of the damages from the four storms, which damaged several stores and left many more without power. Winn-Dixie also said it believes its current cash on hand, available credit with suppliers, available borrowings and cash flow from operations and proceeds from asset sales would be "sufficient [for] its current operating needs."
REVENUES FROM GROCERY WHOLESALING CO-OPS UP 7.7%
WASHINGTON -- The nation's largest grocery cooperatives earned $28.1 billion in revenues in 2003, up 7.7% over the revenues they tallied in 2002, according to data released last week by National Cooperative Bank here. The revenues reflected results from the 19 grocery cooperatives that were ranked among the bank's list compiling the top 100 cooperatives of any kind in the United States. Wakefern Food Corp., Elizabeth, N.J., remained the No. 1 grocery co-op, and it moved up one notch to No. 3 in the ranking of all co-op businesses in the country.
CONSUMERS SPLIT ON OUTLOOK FOR HOLIDAY SEASON
COLUMBUS, Ohio -- Consulting firm Retail Forward here last week said it expected the upcoming holiday season to be a mixed bag for retailers. Based on the firm's phone poll of consumers across the country, the company projected that the season will be positive for higher-end retailers, while "it looks like 'bah-humbug' holidays for the have-nots." In a conference call discussing its October forecast for consumer spending, Retail Forward said lower-income consumers lack faith that the employment picture is improving. Among high-income households, 23% said they plan to spend more on holiday gifts this year than last, vs. 21% who said they would spend less. That compares with 17% of lower-income households who plan to spend more this year and 32% who plan to spend less.
