FARMER JACK PLANS TO SHUTTER STORES: REPORT
an unspecified number of its 106 supermarkets in this market as part of a cost-cutting initiative, according to reports. "We are nearing the end of the year, and it is imperative for Farmer Jack to regain financial stability and ensure the ongoing viability of jobs for the future," Farmer Jack's president, Jack Carter, was quoted as saying. The cuts follow the reaching of a new labor agreement with United Food and Commercial Workers Local 876, Madison Heights, Mich. The agreement, which had yet to be ratified by union members, would "minimize the number of store closings, which may be required as part of the overall cost-reduction program," the company said in a prepared statement. A spokeswoman for the chain, which is owned by A&P, Montvale, N.J., declined to comment further. A&P could not be reached for comment.
PRIVATE EQUITY GROUP ACQUIRES DUANE READE
NEW YORK -- Duane Reade here said last week it has entered into a definitive merger agreement to be acquired by an affiliate of Oak Hill Capital Partners here, a private equity group. Under the terms of the agreement, the drug store chain's stockholders will receive $17 per share in cash. The company said the aggregate value of the transaction exceeds $700 million, including the repayment of indebtedness. Several senior members of Duane Reade's management will have equity interests in the acquiring entity.