NEWS WATCH: INTEREST AMONG FUNDS IN PATHMARK LUKEWARM...GROUP URGES OFFICIALS TO CHARGE FOR GROCERY BAGS...LAWSUIT ALLEGES FRED MEYER OVERCHARGED FOR MEAT 2004-11-29 (2)

INTEREST AMONG FUNDS IN PATHMARK LUKEWARM

ate equity funds in purchasing Pathmark here has thus far been "lukewarm," a published report said. According to the Daily Deal, which reported the chain had retained investment bank Dresdner Kleinwort Wasserstein to explore a sale, "a few" first-round bids arrived. However, firms with an interest in the supermarket sector, including Yucaipa Cos., Los Angeles; Cerebus Capital, New York; and Kohlberg Kravis Roberts, New York, had decided not to bid. Analysts have suggested Pathmark might also attract acquisition bids from other supermarket companies, including Kroger, Albertsons and Delhaize Group.

GROUP URGES OFFICIALS TO CHARGE FOR GROCERY BAGS

SAN FRANCISCO -- An environmental group is urging city officials here to consider a resolution to charge grocery stores 17 cents per shopping bag as a means to discourage waste. According to the environmental group Californians Against Waste, bags create "significant litter problems for San Francisco's streets, beaches, sewer system and marine environment." According to a petition the group made to the city board of supervisors and Mayor Gavin Newsom, stores could keep half the money collected for bags to create programs to encourage use of durable bags, in-store bag collection and other projects, while the city would use its half of the fee. A similar program in Ireland, the group said, cut bag usage by 90%.

LAWSUIT ALLEGES FRED MEYER OVERCHARGED FOR MEAT

PORTLAND, Ore. -- Fred Meyer here last week said it would conduct a "thorough review" into allegations that it overcharged for meat. A lawsuit filed in King County Superior Court in Seattle charged that Fred Meyer, a division of Kroger, Cincinnati, knowingly charged for a portion of the packaging in meat products it sold in violation of state law in Washington, Oregon and other states where it operates. In a statement, Fred Meyer said, "We are committed to 100% price accuracy for our customers. Fred Meyer has strict guidelines and policies in place for ensuring that the price per pound charged to customers is accurate, fair and consistent. We expect every associate to adhere to those procedures. Although we have not received a copy of the lawsuit, we take these allegations very seriously and are conducting a thorough review of this matter."

WEST VIRGINIA KROGER EMPLOYEES APPROVE CONTRACT

CINCINNATI -- Workers at 12 Kroger stores in West Virginia and Ohio last week approved a new contract covering about 950 members of United Food and Commercial Workers Local 23, according to the union. The vote was 711 to 178. Terms of the new agreement with Kroger, based here, were not available. Union workers had earlier voted to authorize a strike if an agreement could not be reached.

LABOR BOARD ORDERS WAL-MART TO PRODUCE DOCUMENTS

REGINA, Saskatchewan -- A provincial appeals court here yesterday ordered Wal-Mart Stores to turn over internal documents that union officials say show a corporate campaign to derail union drives, the Associated Press reported. The Saskatchewan Labor Relations Board had requested the papers at the behest of the United Food and Commercial Workers union, which is attempting to organize a Wal-Mart store in Weyburn. The UFCW contends it had enough signed union cards to make certification, but has not been able to obtain documents from Wal-Mart as part of the certification process, the report said. Earlier this year, employees at a Jonquierre, Quebec, Wal-Mart location successfully petitioned to have its workers represented by the UFCW, making it the only union Wal-Mart store in North America.