News Watch 2006-12-04 (1)

AHOLD ACTIVIST INVESTORS SEEKING MORE SUPPORT

AMSTERDAM — Dissident investors pressuring Ahold here to enhance value through a sale of its U.S. retail assets said last week they were talking to other investors to gain support. Randel Freeman, managing director of London-based hedge fund Centaurus Capital, in a statement said Ahold's recently announced strategic plan “lacks clarity” on its U.S. strategy, adding that Centaurus was “talking to other significant investors to discuss how we can support management in their efforts to enhance shareholder value and build a strong and competitive business.” Centaurus, together with New York-based investor Paulson & Co., holds a 6.4% stake in Ahold.

MARSH RAISES $78 MILLION IN SALE-LEASEBACK DEAL

INDIANAPOLIS — Marsh Supermarkets here raised about $77.8 million by selling eight supermarkets to a real estate company and agreeing to lease them back, according to the properties' buyer, H&R REIT of Toronto. The eight properties acquired by H&R were among an unspecified number of sites acquired for sale-leaseback by Cardinal Paragon, Dallas, and its New York-based partner, Drawbridge Special Opportunities Advisors, as part of a previous agreement with Marsh's new owner, Sun Capital Partners, an H&R spokesman told SN. “The sale-leasebacks will allow us to reinvest in our business to improve our company,” a Marsh spokeswoman told SN.

SOUTHERN FAMILY TO CLOSE SEVEN TENNESSEE STORES

BIRMINGHAM, Ala. — Southern Family Markets here will be closing its seven stores in Tennessee on or before Dec. 9, sources told SN last week. The stores, located in Shelbyville, Tullahoma, Columbia, Pulaski, Lavergne, Manchester and Franklin, Tenn., will close Dec. 9 or sooner, depending on inventory sales. Southern Family, owned by an affiliate of C&S Wholesale Grocers, Keene, N.H., arrived in Tennessee through the purchase of former Bi-Lo stores a year ago.

SAN DIEGO VOTES TO REGULATE SUPERCENTERS

SAN DIEGO — The City Council here voted last week to ban retail stores with more than 90,000 square feet that use 10% of their space to sell groceries and other non-taxable merchandise — a move most observers believe is aimed at Wal-Mart Stores. The ban excludes membership stores such as Costco and Sam's Club, however. The 5-3 vote saw the council's five Democratic members voting in favor of the ban and the council's three Republicans voting against it. In a separate but related action, the council voted unanimously to approve a proposal to regulate retail stores with more than 50,000 square feet by requiring them to meet additional design and landscape standards.

BUEHLER'S, ZAGARA'S AMONG OHIO TOPS BUYERS

BUFFALO, N.Y. — A Tops Markets spokeswoman here last week confirmed the sales of two former Tops stores in Ohio to Buehler's Food Markets and Zagara's Marketplace, and said other store sale announcements were forthcoming late last week. Buehler's, Wooster, Ohio, said it would convert the acquired store in Brunswick to its banner early next year. Zagara's new store in Richmond Heights was scheduled to reopen under its new banner Dec. 1.

UFCW CANADA LOCAL STRIKES AT METRO WAREHOUSE

MONTREAL — Metro Inc. and union workers at a dry grocery warehouse here were in negotiations with a mediator late last week in an attempt to end a strike that began Nov. 24. Concern over Metro's plan to relocate jobs, among other issues, sparked the job action, a union spokesman told SN. The strike includes 315 members of United Food and Commercial Workers Local 501.