NEWS WATCH 2001-11-26

SDM Files for Chapter 11

Group here said last week it has filed for liquidation of Super Discount Markets, its Atlanta-based subsidiary, under Chapter 11 of the U.S. Bankruptcy Code. SDM is a joint venture between Delhaize and Supervalu, Minneapolis, with Delhaize owing 60% and Supervalu 40%. The operation includes 19 Cub Foods stores and 10 Save-A-Lot limited assortment stores in the Atlanta area. Delhaize previously disclosed plans to close one Save-A-Lot, sell the other nine locations to Supervalu and seek buyers for the Cub stores. The company said earlier this month the decision to shut down the operation followed a strategic review of its operations, which led it to conclude "that the significant investment required to be successful in the highly competitive Atlanta market would not be justified." A recording at the SDM phone number said the liquidation filing "allows for an equitable settlement for all creditors."

Kroger to Enter Chicago: Report

CINCINNATI -- Kroger Co. here reportedly hopes to enter the Chicago marketplace next year with 15 Food 4 Less warehouse stores, according to published reports. Kroger officials declined comment last week. However, the reports said the company contemplates opening 45 stores of 60,000 square feet each over the next few years. While Kroger reportedly intends to build most of the stores, it was said to be in discussions with Supervalu, Minneapolis, about a possible purchase of some Cub Foods locations on the city's south side. Supervalu officials declined comment, but said the company is committed to the Chicago market.

Bashas' Acquires 22 Southwest Stores

CHANDLER, Ariz. -- Bashas' Markets here said last week it has acquired 22 Southwest Supermarkets for $9 million in a U.S. bankruptcy court sale. The purchase will double the size of Bashas' Food City chain to 52 stores, said a company spokeswoman. The deal, expected to close early this week, was originally set for 23 Southwest stores, but the company decided not to buy one store in Casa Grande, Ariz., the spokeswoman said.

Kmart Issued Decree In Harassment Case

TROY, Mich. -- Kmart Corp. here reportedly must pay a Hispanic worker $50,000, and managers at the company's Zion, Ill., store must undergo tolerance training, according to published reports. The worker filed a complaint with the U.S. Equal Employment Opportunity Commission in 1999, asserting he had been harassed because of his national origin, according to published reports. Kmart could not be reached for comment.