NEWS WATCH: WINN-DIXIE REPORTS $164M LOSS IN AUGUST... TEAMSTERS OK NEW AGREEMENTS WITH KROGER, SAFEWAY... CHANGE TO WIN NAMES OFFICERS, SETS DUES...
WINN-DIXIE REPORTS $164M LOSS IN AUGUSTre lost $164.4 million -- $142 million of which was a result of discontinued operations -- in the four weeks ending Aug. 24, the retailer said in bankruptcy court last week. The company reported sales of $550.8 million for the period and gross profit as a percentage of sales of 25%. Winn-Dixie said it had $242 million excess availability on the $800 million debtor-in-possession
October 3, 2005
WINN-DIXIE REPORTS $164M LOSS IN AUGUST
re lost $164.4 million -- $142 million of which was a result of discontinued operations -- in the four weeks ending Aug. 24, the retailer said in bankruptcy court last week. The company reported sales of $550.8 million for the period and gross profit as a percentage of sales of 25%. Winn-Dixie said it had $242 million excess availability on the $800 million debtor-in-possession credit facility and $1.9 billion in liabilities. Winn-Dixie reported a loss of $38.5 million on sales of $733 million during the four weeks ending July 27.
TEAMSTERS OK NEW AGREEMENTS WITH KROGER, SAFEWAY
LOS ANGELES -- Kroger Co. and Safeway said in separate announcements that drivers, warehouse workers, office workers and mechanics in Southern California -- all members of the Teamsters union -- have ratified new labor contracts. Albertsons told SN last week it was "diligently working" to reach agreement with its Teamster employees. Kroger, Cincinnati, said its new five-year contracts cover employees at Ralphs and Food 4 Less who are represented by seven Teamster locals. Safeway, Pleasanton, Calif., said its agreements cover Teamsters from three locals working at Vons. Albertsons said it is negotiating with a single Teamsters local.
CHANGE TO WIN NAMES OFFICERS, SETS DUES
ST. LOUIS -- The United Food and Commercial Workers Union and six other unions that have formed a separate coalition apart from the AFL-CIO unveiled the group's executive team at the coalition's inaugural convention here last week. Anna Burger, a leader with the Service Employees International Union, was named chairwoman of Change to Win, and Edgar Romney was named secretary and treasurer, a spokeswoman for the new group told SN. The leadership council includes the top officer from each of the seven member unions, plus three "diversity seats," held by Burger, Romney and Geralyn Lutty, a vice president with the UFCW International. To fund its mission of trying to recruit more workers into unions, Change to Win will have a budget of "close to $35 million," the spokeswoman said, which includes $16 million from worker contributions of 25 cents per month and the rest from funds that previously had been pledged to the AFL-CIO.
ROUNDY'S PLANS OFFERING TO REFINANCE DEBT
MILWAUKEE -- Roundy's Supermarkets here said last week it would refinance "substantially all" of its debt. The company plans to extend a new debt offering and enter into a new secured term loan and revolving credit facility. The proceeds will be used to repay its existing senior credit facility, repay its outstanding 8-7/8% senior subordinated notes due 2012 and fund a dividend to equity shareholders. More details about the recapitalization will be disclosed "in the coming days and weeks," a Roundy's spokesman told SN.
NEW YORK COUNTY PASSES HEALTH CARE BILL
HAUPPAUGE, N.Y. -- Suffolk County lawmakers here last week voted 17 to 1 in favor a bill that would require non-union grocery retailers to set aside money to pay for health care costs. The measure would require retail stores of more than 25,000 square feet devoted to groceries; or stores of 100,000 square feet devoting 3% of floor space to groceries, to spend a certain amount of worker health care. For Wal-Mart, which operates five stores in Suffolk County, the cost would be around $3 per hour for its workers, according to the United Food and Commercial Workers union, which lobbied for the bill. "We are concerned that the health care bill passed today is a kind of hidden tax that runs counter to Wal-Mart's commitment to everyday low prices," said Philip Serghini, a spokesman for Bentonville, Ark.-based Wal-Mart. The bill can become law if approved by the county executive. The bill is similar to a measure passed by New York City Council recently, and subsequently vetoed by Mayor Mike Bloomberg.
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