News Watch 2008-04-07

DELHAIZE CLOSES GREEK DEAL, ANNOUNCES ROMANIAN BUY

BRUSSELS — Delhaize Group said last week that it had closed on the $108.5 million purchase of Plus Hallas, a chain of grocery stores in Greece. The 34 stores, along with one distribution center, have been consolidated in Delhaize's Alpha-Beta division. Delhaize in a separate announcement said its Mega Image subsidiary in Romania would purchase La Fourmi, a 14-store operator based in Bucharest, for approximately $29 million. That deal is expected to close in the second quarter.

HENDERSON NAMED USA RETAILER OF THE YEAR BY IGA

CHICAGO — Tim Henderson, owner of Henderson's IGA in Valentine, Neb., has been named 2008 USA retailer of the year, IGA here said last week. Henderson's father Jerry was a previous winner of IGA's retailer of the year award. In introducing Tim Henderson, IGA said he is never satisfied and is constantly “dreaming up new ideas to advance the IGA brands — from an outdoor produce tent sale to hiring a popular in-store chef and installing a state-of-the-art music system, [he] obviously knows a thing or two about balancing local hometown pride with ‘big city’ ideas.” Henderson is a customer of Affiliated Foods Midwest, Norfolk, Neb. He joined two other IGA members who were previously named IGA international retailers of the year — David Scally of Ballina Siupa IGA, New South Wales, Australia, and Edith Cox, of Graceway IGA In Providenciales, Turks and Caicos Islands.

PENN TRAFFIC GETS EXTENSIONS ON CREDIT AGREEMENTS

SYRACUSE, N.Y. — Penn Traffic Co. here last week said it has secured extensions to its existing credit agreements, which were set to expire April 13. The new agreement with GE Corporate Lending was extended until April 13, 2010, and the agreement with Kimco Capital Corp. was extended until April 13, 2009. The company said it can extend the Kimco agreement for one additional year if certain financial ratios and other conditions are met. The existing agreements provide for $162 million of available credit, including a $130 million revolver, a $6 million term loan and a $26 million supplemental real estate facility. According to Gregory J. Young, president and chief financial officer, “The successful extension of our credit agreements provides Penn Traffic with the necessary flexibility to continue to stabilize the business, invest in our core retail store portfolio, improve our customers' shopping experience and improve our overall offering in the markets we serve.”

EEOC FILES NEW SUIT AGAINST ALBERTSONS: REPORT

DENVER — The U.S. Equal Employment Opportunity Commission has filed suit against Albertsons LLC, saying the retailer engaged in racial bias at its distribution center in Aurora, Colo., reports said last week. The suit alleges that Albertsons retaliated against employees who opposed discriminatory practices, the Denver Post newspaper reported. The EEOC filed a pending lawsuit against Albertsons in 2006 alleging the retailer did not respond to racist drawings and slurs around the warehouse and placed minority workers in less desirable jobs than their colleagues.

REDNER'S INCREASES REWARD IN HOMICIDE CASE

READING, Pa. — Redner's Markets last week added $15,000 to the reward pool for information leading to an arrest in the murder of Gary Redner, a company executive and a son of Redner's founder Earl Redner. The reward is now up to $60,000, according to the Pennsylvania State Police. In a statement, state police asked the public to come forward with information they might have regarding acquaintances with wounds that might be consistent with a fight or assault around the March 8 incident. Police said whoever killed Redner was likely to have been injured during the crime.