Kohl’s Sale Rumored
By George Anderson
The Newark (NJ) Star-Ledger has reported that A&P may be looking to sell 31 stores in Wisconsin operating under the Kohl’s grocery store banner.
Speculation about a possible sale grew last week when Kohl’s top executive, Glenn Dickson, was named to replace the head of A&P’s New Orlean’s division. There is no current replacement for Mr. Dickson in Wisconsin.
A&P has admitted publicly that it will consider selling assets to stay current with debt payments. The grocery store chain has reported losses of $174 million for the past two quarters.
Gary Giblen, research director, C.L. King & Associates, said, “If they can sell Kohl’s (for a good price), they probably gain a couple of quarters of flexibility to turn the company around.”
Moderator’s Comment: Does A&P need to sell assets?
What will it take to right the company?
The same article cited Gary Giblen as saying A&P had
a deal to sell Kohl’s last year but that it fell through because a pension fund
was underfunded by millions. [George
Anderson – Moderator]
of A&P selling Wisc. stores intensifies, Supermarket needs to raise money
to fix finances – Star-Ledger