NEWS WATCH: FOODARAMA REJECTS YUCAIPA BUYOUT OFFER...LARRY'S MARKETS FILES CHAPTER 11; AWAITS SALE...WINN-DIXIE SELLS 21 FLORIDA STORES IN AUCTION

Foodarama Rejects Yucaipa Buyout Offer

seeking to take Foodarama here private rejected advances for a buyout by Ron Burkle's Yucaipa Cos., according to federal documents filed by the ShopRite retailer, based here. Foodarama, which announced plans to go private last year, said in the filing that Los Angeles-based Yucaipa, the largest shareholder of Foodarama rival Pathmark, made an unsolicited offer to buy the company in December, but that Burkle was eventually dissuaded from pursuing it after a February meeting with Richard Saker, Foodarama's president and chief executive officer, who said the Saker family had no interest in relinquishing its majority stake. Foodarama also suggested that Yucaipa may have had to pay $300 million under the rules of Wakefern, Foodarama's wholesale supplier.

Larry's Markets Files Chapter 11; Awaits Sale

KIRKLAND, Wash. - Larry's Markets here has filed for protection under Chapter 11 of the U.S. bankruptcy code while it awaits completion of a deal to sell itself. "There are several interested parties with whom we are talking," Mark McKinney, chief executive officer of the six-store chain, said in a statement. "The Chapter 11 filing allows for continued operations and the time to successfully continue and complete the discussions regarding the sale of our stores. It is a difficult personal step to take but one feel is the best option." McKinney added that the company expects to be sold "in the next 90 to 120 days." Bankruptcy papers list assets of $12.6 million and liabilities of $21.5 million.

Winn-Dixie Sells 21 Florida Stores in Auction

JACKSONVILLE, Fla. - An auction of 35 closed Winn-Dixie stores here last week resulted in 21 stores being sold for a total of more than $15 million, the retailer said. Buyers for the stores, all located in Florida, included rival Kash n' Karry/Sweetbay, purchasing locations in Tampa, Sarasota and Naples for a total of $3.25 million; Sunrise Properties, identified in published reports as Food Town, buying four locations; Office Depot, buying three stores; Wal-Mart, which purchased stores in North Miami Beach and Pompano Beach; Staples, buying a location in Ft. Lauderdale; Bravo Supermarkets, buying an Orlando location; with the remaining stores several sold back to their landlords.

Quarterly Sales, Profits Dip at Spartan Stores

GRAND RAPIDS, Mich. - Sales and profits declined during the fiscal fourth quarter for Spartan Stores here, but the company said it had improved earnings from continuing operations. Sales for the 12-week quarter, which ended March 25, declined 1.1% to $452.8 million, primarily due to the shift of Easter sales into the first quarter and by the closure of two Pharm stores, Spartan said. Comparable-store sales declined 1.5%, while total retail sales fell to $192.3 million from $198.9 million in the same period a year ago, due to the Easter shift, store closures and competitive openings. Distribution sales increased 0.7% to $260.5 million, mainly from new customers. Net earnings of $5.3 million, or 25 cents per share, decreased 8.6% from the year-ago period.

Stater Bros. Reports Quarterly Sales Increase

COLTON, Calif. - Stater Bros. Holdings here said sales increased 2.5% and earnings jumped by 72% during its fiscal second quarter, which ended Marsh 26. Sales were $863.5 million for the 13-week quarter and $1.73 billion for 26 weeks, Stater said. Comparable-store sales, excluding the effect of the Easter holiday which fell in the third quarter of this fiscal year and in the second quarter last year, comparable-store sales increased 0.4% for the quarter and 0.3% for the 26-week period. Net income jumped from $3.6 million to $6.2 million in the quarter and from $6.9 million to $9.2 million for the 26-week period.