NEWS WATCH: RALPHS SUSPENDS REGIONAL MANAGERS IN HIRING PROBE...WAL-MART NEARS SETTLEMENT IN CLEANING-CREW CASE...CARNECO RECALLS 500,000 POUNDS OF MEAT IN 10 STATES

RALPHS SUSPENDS REGIONAL MANAGERS IN HIRING PROBE

a division of Kroger, Cincinnati, has reportedly put five regional supervisors on administrative leave with pay, pending the conclusion of an ongoing investigation into alleged illegal hiring practices during the 141-day strike-lockout in Southern California that ended in March. Ralphs officials declined comment on the reports. However, industry sources told SN the five employees had been suspended for their roles in allegedly hiring locked-out employees under false names and Social Security numbers. It was not clear if any other employees had been suspended or terminated. The actions against the five employees came in the wake of an internal investigation, which is paralleling a federal investigation, into allegedly illegal hiring practices during the strike-lockout.

WAL-MART NEARS SETTLEMENT IN CLEANING-CREW CASE

BENTONVILLE, Ark. -- Wal-Mart Stores here said last week it is continuing to cooperate with a federal investigation into whether it employs illegal workers but declined comment on reports it was close to reaching an out-of-court settlement on the matter. Published reports last week said Wal-Mart and the Department of Justice were discussing a settlement of approximately $10 million in a case involving allegations the company knowingly hired outside contractors that used illegal immigrants to clean its stores. According to Gus Whitman, a Wal-Mart spokesman, "From the very beginning, we've maintained we knew nothing of the alleged violations of the floor-cleaning contracts and that we hoped the government would reach that conclusion in an expeditious manner. We continue to cooperate with this investigation." The case grew out of a raid last October in which federal agents rounded up 250 illegal immigrants working at 61 Wal-Marts.

CARNECO RECALLS 500,000 POUNDS OF MEAT IN 10 STATES

COLUMBUS, Neb. -- Carneco Foods last week launched a voluntary recall of 497,000 pounds of meat processed at its plant here after five people got sick from eating beef patties contaminated with E. coli 0157:H7. The processor was notified of the problem by Sam's Club, a division of Wal-Mart Stores, Bentonville, Ark. Sam's sold the products from stores in Minnesota and Wisconsin. The meat was offered in various forms and under several labels -- all was distributed to Sam's Club units in 10 states, including Florida, Georgia, Illinois, Indiana, Louisiana, Pennsylvania, New York, Ohio, Utah and Wisconsin. The company is recalling three products, all processed on June 21: ground sirloin patties, 80% lean beef patties and 90% lean fresh ground beef. The plant in question was involved in two earlier recalls, including the massive 25-million-pound callback in 1997 when it was owned by Hudson Foods.

KING SOOPERS STORE SWITCHING TO FRESH FARE BANNER

DENVER -- Kroger, Cincinnati, is considering converting a King Soopers store here into its Fresh Fare format, published reports said. Kroger has converted stores in Michigan and Seattle to the Fresh Fare concept, which feature larger natural/organic, gourmet and prepared foods sections than traditional supermarkets. Employees have been told the store will be changing to the new format, but King Soopers did not confirm a switch was imminent, the report said. A King Soopers spokesman was not immediately available for comment to SN.

FAMILY DOLLAR TO OPEN 109 NEW STORES IN AUGUST

MATTHEWS, N.C. -- Family Dollar here said last week it opened 44 stores during the four-week period ended July 31 and plans to add another 109 stores in August, confirming previously announced plans to open 500 stores during the fiscal year ending Aug. 28. The company now operates 5,358 stores.