Newswatch 2009-11-02

BASHAS' LOSSES CONTINUE IN SEPT.

PHOENIX — Bashas' posted a loss of $5.4 million in September and has lost $46.8 million for the calendar year through Oct. 3, the retailer said in an operating report filed last week in U.S. Bankruptcy Court here. The retailer reported sales of $147.6 million and a gross profit (sales less cost of goods sold) of $48.9 million for the monthly period that ended Oct. 3. For the calendar year to date, Bashas' had sales of $1.3 billion. Bashas' filed for Chapter 11 protection in June, citing unproductive stores, a downturn in the local economy and tight credit markets.

SUPER 88 FILES FOR BANKRUPTCY

BOSTON — Super 88 LLC, which operates a small chain of Asian supermarkets here, filed for Chapter 11 bankruptcy protection last week, listing assets of less than $10 million and liabilities between $10 million and $50 million. In its initial filing with the U.S. Bankruptcy Court, Massachusetts District, the chain said it had between 100 and 199 creditors. Earlier this year, the chain had reportedly reached an agreement to be acquired by New York-based Hong Kong Supermarkets, but that deal fell through after a legal challenge by other companies that said they had agreements to acquire individual locations. Super 88 had closed three stores last year, leaving it with three locations.

ROUNDY'S SEEKS TO AMEND CREDIT

MILWAUKEE — Roundy's Supermarkets here is seeking to extend the maturities on some of its debt, according to a report last week. Moody's Investors Service affirmed its ratings for the retailer at B2 for the company's debt — B1 for the bank credit facility — but changed the outlook to stable from negative. Roundy's is extending until November 2012 up to $125 million of its revolving credit facility and until November 2013 up to $600 million of a term loan. Both are two-year extensions. Moody's cited Roundy's high leverage as a concern if sales falter, but noted that the chain's margins compare well with other supermarket companies.

UNFI PLANS NEW DC IN TEXAS

PROVIDENCE, R.I. — United Natural Foods Inc. here last week said it plans to lease a new 590,000-square-foot distribution center near Dallas that it would use to supply retailers in Texas, Oklahoma, New Mexico, Arkansas and Louisiana. The facility in Lancaster, Texas, is scheduled to begin operations next fall. It will be the natural- and specialty-product distributor's 21st delivery warehouse. The DC, owned by ProLogis, will include 54,00 square feet of refrigerated and frozen space. It will seek LEED (Leadership in Energy and Environmental Design) certification. Steve Spinner, president and chief executive officer of UNFI, said the facility would allow it to transfer some routes from its Denver warehouse and make the company more efficient.

HY-VEE MAKES WISCONSIN DEBUT

MADISON, Wis. — Hy-Vee last week opened its first Wisconsin store here, a 92,000-square-foot location housed in a former Kmart. It is also the first LEED-certified (Leadership in Energy and Environmental Design) supermarket in the 226-store chain. “We hope that it can become the model for our future growth,” Ric Jurgens, president and chief executive officer of West Des Moines, Iowa-based Hy-Vee, told SN earlier this year. The store includes dedicated parking for fuel-efficient vehicles and other “green” elements, such as skylights and energy-saving refrigeration systems.