MONTVALE, N.J. — The Tengelmann Group may consider eventually selling its stake in A&P, a spokeswoman for A&P here confirmed yesterday following reports of the potential sale in a German newspaper.
Christian Haub, chairman of A&P and a member of the family that owns Germany-based Tengelmann, reportedly told Manager Magazin that Tengelmann, which acquired a stake in A&P 30 years ago and still owns a 38.6% share in the U.S. retailer, is seeking to boost the profitability of the company over the next two years to maximize the price for a possible sale.
The spokeswoman for A&P said Haub’s comments were taken “out of context” and noted that “the potential sale of the business was only discussed as one of many possible longer-term alternatives which are a reality to any business.”
Last month Los Angeles-based investment firm Yucaipa Cos. acquired a 27.6% stake in A&P through a $115 million investment and has pledged additional funding. The investment will increase liquidity at the struggling retailer, A&P said at the time, and help it reduce debt obligations.
“Mr. Haub is very excited about the current partnership with Yucaipa and is looking forward to creating more value for the company by concentrating on the strategic optimization initiatives recently announced,” the spokeswoman for A&P told SN. “This strategy and the current operations are the priority for Christian and the executive management team.”
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