NEWSWATCH 2001-02-26

Kroger Co., Cincinnati, said last week it is being sued for $750 million by the family of a suspected shoplifter who died after Kroger security guards subdued him at a Detroit-area store. Police said Travis Shelton was allegedly stealing beef tenderloin at a Kroger store in Royal Oak, Mich., on Feb. 8 when security guards struggled with him, according to news reports. Kroger declined to comment on the case other than to express sympathy for the victim's family and to say it is cooperating with police in the investigation of the incident. Shelton's family is being represented by lawyer Geoffrey Fieger, a former Democratic candidate for Michigan governor who rose to national prominence representing Dr. Jack Kevorkian.

ecurities from the Nasdaq National Market. Eagle Food Centers was notified of Nasdaq's intent to delist the company in mid-November. Nasdaq stated in a letter dated Nov. 13 that Eagle Food Centers had not maintained a minimum market value of public float and a minimum bid price for 30 consecutive trading days as required for continued listing on the Nasdaq National Market and that delisting would occur Feb. 14. Eagle filed the appeal Feb. 12, and the delisting process has been suspended pending resolution of the appeal. Eagle also said last week it has prepared a plan to achieve compliance with Nasdaq's requirements and will submit the plan during the appeal.

Webvan, Foster City, Calif., said last week that it will exit the Dallas market in an attempt to lower operating costs while focusing on the profitability goals it has set for its nine other markets. The Dallas closing will allow Webvan to focus on its remaining markets in Atlanta; Chicago; Orange County, Calif.; Portland, Ore.; Sacramento, Calif.; San Diego; San Francisco; Seattle; and Los Angeles, the company said. "Dallas is our least developed and most competitive market. Gaining the necessary customer base to bring our Dallas operations to profitability would require a large investment in marketing and working capital," said George T. Shaheen, Webvan chief executive officer. The decision to halt operations in Dallas will result in the termination of 220 jobs.

Steele's Markets, Fort Collins, Colo., said a cash flow shortfall that began two years ago prompted it to file a petition to reorganize under Chapter 11 of the U.S. Bankruptcy Code. According to the six-store operator, its financial problems stemmed from the opening of a 63,000-square-foot store in December 1998, whose business was interrupted when a primary access road was closed for six months. According to Don Hendrix, operations director, the bankruptcy court authorized him to oversee the chain during the reorganization. Hendrix, who reports to Russ Kates, Steele's chief executive officer, previously worked for Nash Finch and Safeway before opening his own European consultancy, Donson, in Brussels; Hendrix currently runs Donson's U.S. branch, called Hendrix International, based in Phoenix.