SLOAN'S TO MANAGE ARGENTINIAN CHAIN

ELLIOT ZWIEBACH

NEW YORK -- Sloan's Supermarkets here said it has completed an agreement to manage a supermarket chain in Argentina.

The deal involves Hawaii Supermarkets, a chain of 14 stores averaging 10,000 square feet in inner-city areas of downtown Buenos Aires. According to John Catsimatidis, chairman and chief executive officer of Sloan's, the company is contemplating renaming the stores "Red Apple," which is the name Catsimatidis formerly used on some of the supermarkets in his privately held, New York-based operation. The stores have been closed since January, following a bankruptcy filing last year. Catsimatidis said the management contract calls for Sloan's to reopen the stores over a period of 30 to 90 days and to consider opening additional locations in the future.

"This action is in keeping with Sloan's policy of growth," Catsimatidis said. "Sloan's will have the option, at the end of six months, to review the viability of this venture." Sloan's will receive a net management fee of 1.75% of sales, Catsimatidis said. In addition, all expenses, including those for personnel stationed in Buenos Aires, will be reimbursed, he said. Catsimatidis said Hawaii Supermarkets was acquired earlier this year by New York real-estate investors who knew Catsimatidis and asked him to run the stores, which were doing a volume of about $175 million at the time they closed. The new owners hope to double the stores' volume within a few years, he noted. Sloan's operates 11 stores here in a publicly held company, with Catsimatidis as the majority shareholder. Catsimatidis also operates 48 privately held supermarkets as part of Red Apple Companies, Inc., including 24 Sloan's and 24 Gristede's.