Newswatch 2010-07-12 (2)

BASHAS' EYES NEW PLAN: REPORTS

CHANDLER, Ariz. — Bashas' here has reportedly given up on arranging financing that would have allowed it to repay its lenders immediately in cash in the full amounts owed. The chain, which has been operating under Chapter 11 bankruptcy protection since June 2009, is now hoping to pay off creditors in installments, with a balloon payoff after three years, according to published reports. The chain's bankruptcy attorney could not be reached for comment. The reports said Bashas' gave up on a $250 million refinancing package after credit terms tightened following a drop in the stock market last month. The alternative plan it is now pursuing includes higher interest rates. A hearing in U.S. Bankruptcy Court — to confirm a reorganization plan, if all parties agree — is scheduled for July 22.

GIANT FOOD SETTLES WITH TEAMSTERS

LANDOVER, Md. — Giant Food here said it has reached an agreement with one of the three unions representing workers at a grocery warehouse that will save jobs as the facility is transferred as planned to new management this fall. Giant earlier this year said it would transfer its dry grocery warehouse in Jessup, Md., to an affiliate of C&S Wholesale Grocers. The agreement with Teamsters Local 730 would preserve 341 full-time jobs at the plant, although some jobs would become part-time, according to a report in the Baltimore Sun newspaper. Giant said it hopes to come to an agreement with two other labor unions representing workers at the facility.

KROGER RAISES $300M IN DEBT SALE

CINCINNATI — Kroger Co. here last week raised $300 million through the sale of senior unsecured notes due in 2040. Proceeds from the offering were to be used for general corporate purposes, Kroger said in a prospectus. The offering was rated as stable by rating agencies. The size of the deal was increased from an originally planned $250 million, according to Thomson Reuters.

AHOLD DEFENDANT TO GET NEW TRIAL

NEW YORK — A federal appeals court ordered a new trial for the former chief marketing officer of Ahold's former U.S. Foodservice division. Mark Kaiser in 2006 was convicted of securities fraud, conspiracy and other charges in connection with Ahold's 2003 accounting scandal. However, an appeals court last week said the judge erred by giving “confusing” instructions to the jury, according to a report in the Wall Street Journal. Ahold sold U.S. Foodservice in 2007.

LOBLAW WORKERS APPROVE STRIKE

MISSISSAUGUA, Ontario — Citing a lack of progress in contract negotiations, union workers at Loblaw Cos. stores in Ontario last week gave their leaders the authorization to call a strike against the retailer. Workers in Windsor, Chatham and Sarnia voted in favor of strike authorization last week, according to United Food & Commercial Workers Locals 175 and 633 here. Further negotiations between Loblaw and four local unions are scheduled later this month.

TARGET SETS NEW YORK DEBUT DATE

MINNEAPOLIS — Target here said it would open its first store in Manhattan on July 25. The store, to be located in the East River Plaza in East Harlem, will feature more space devoted to fresh food, everyday essentials and home basics geared for apartment living, along with a selection of multicultural offerings.