NEW YORK -- Sloan's Supermarkets here is considering ways to expand its revenue base, including acquiring stores held privately by the chain's chairman and managing a chain of supermarkets in Argentina, the company's shareholders were told at last week's annual meeting. John Catsimatidis, chairman of Sloan's, an 11-unit public company, said the operator is considering acquiring up to 40 stores from the privately held Red Apple Cos. operation, whose chairman is also Catsimatidis, the majority owner. An independent group of Sloan's directors is considering the move and expects a decision by mid-year.
ntial revenue source: an offer to manage a chain of stores in Argentina for a fee based on a percentage of sales. In a discussion with SN after the meeting he declined to name the chain but said its stores do more than $200 million a year in volume. He said the stores are about the same size as Sloan's locations here, "and they are located in inner-city areas, as ours are." The people in control of the Argentina chain approached Catsimatidis "because they are former New Yorkers who know our operation," he said. Catsimatidis told SN that Sloan's will make a decision on the offer within a few weeks. In other remarks at the meeting, Catsimatidis cited a number of achievements by Sloan's since it went public in 1993, including the following:
The payment of virtually all of the $5 million of assumed trade debt.
The paydown of approximately $1.8 million of the $5 million bank debt used to acquire the Sloan's operation in 1992.
Completion of the company's $1.25-million store remodeling program, which, combined with more effective merchandising, has resulted in increased sales and cash flow from store operations.