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Supervalu to Sell Jewel-Osco Stores

Jewel's parent company reported a sales decline of 3 percent, to $27.9 billion, last year.

Jewel-Osco parent company Supervalu on Thursday announced it will sell the grocery store chain—along with its Albertsons, Acme, Shaw’s and Star Market chains—in a $3.3 billion deal.

According to the Chicago Tribune, Supervalu reported a loss of $1.04 billion for fiscal year 2012, including a $519 million operating loss, and a 3 percent sales decline, to $27.9 billion, last year.

The grocery stores, plus affiliated in-store Osco and Sav-On pharmacies, are being sold to a consortium of investors led by Cerberus Capital Management, according to the Minnesota-based Supervalu.

The deal, which includes $100 million in cash and $3.2 billion in debt, is expected to close this spring, according to the Chicago Tribune. The five grocery store chains will be acquired by Cerberus affiliate AB Acquisition, the paper reported.

After the sale, Sam Duncan will replace current CEO Wayne Sales. Supervalu will continue to own its wholesale grocery business, the Save-A-Lot discount chain and grocery chains, which include Cub, Shop N’ Save and Hornbacher’s.

“The transactions announced (Thursday) represent the successful culmination of the in-depth strategic review process we commenced this past summer,” outgoing CEO Sales said in a press release.

Jewel-Osco’s Elmhurst stores are located at 944 S. York and 153 E. Schiller.

Elle M January 11, 2013 at 05:03 pm
what does this sale mean for us here in elmhurst?
elle
Karen Chadra (Editor) January 11, 2013 at 05:13 pm
I think it's too soon to tell, but Jewel has been sold before and most of us didn't even know it.
Ken January 11, 2013 at 06:43 pm
My wife has worked for Jewel for over 30 years and this will be the 4th owner she's worked under in that time.. The new owners are really looking at the real estate end of the company to see what can be sold at a tidy profit. What is left will be cut to the bone as far as expenses go to make the company more attractive to yet another buyer (maybe Kroger).
With Mariano's opening down the street in a few months the Jewel on Schiller may go dark unless it's making a nice profit now. We'll see.
Elle M January 11, 2013 at 07:29 pm
I would hate to see Jewel go. It is so nice and the people are very friendly there.
elle
B Rush January 11, 2013 at 07:33 pm
when does marianis open
MJ Rogers January 11, 2013 at 09:13 pm
Jewel needs to become more price competitive. I love the deli but I hate the wait.
Artical 2 January 11, 2013 at 09:23 pm
Price point is to high
Jim Court January 12, 2013 at 12:29 am
Jewel does so very much to help to feed those in need that I feel a sense of commitment to them. Sure, I want a "deal" but I am cognizant that we seem to be in a race to the bottom. Cut workers pay and benefits and I guess you can deliver goods cheaper. I would hate to be in the ultra competitive grocery business.
I shop at Schiller St. store I I really like the people there. Jewel also employs many special people who bag for us. Money is important to me but it is not everything.
Alan Brinkmeier January 13, 2013 at 08:26 pm
Everyone interested in learning about Mark Mulliner's vision for Elmhurst, read "Elmhurst Weekly".
http://elmhurst.patch.com/blog_posts/elmhurst-weekly And, come hear Mark Mulliner in person Wed. night Jan. 16 from 5:30 pm to 7:30 pm at Nu Crepes, 115 W. Schiller Ct. http://www.facebook.com/events/115334935307940/ All the various municipal governments in Elmhurst need to work together. That means our City, our Parks, our Schools, along with organizations and institutions like Elmhurst College, Elmhurst Memorial Hospital, YMCA, Elmhurst Children's Theatre etc.... Since we are all in this together, working and planning together is a key. Alan Brinkmeier
JP January 13, 2013 at 09:38 pm
For a guy who should be running his own campaign for school board, Alan sure is alienating a lot of Gutenkauf and Morley supporters and voters.
As the senior Alderman in Elmhurst, I'de love to hear about all of Mulliner's previous efforts to coordinate efforts between all of the various entities mentioned above. You would think if Mark felt so strongly about those things, Elmhurst would already be doing a lot of it. Or, maybe it's all just campaign rhetoric.
Jennifer January 14, 2013 at 04:26 pm
Hopefully Whole Foods or Trader Joes will move in....
Joe O'Malley January 18, 2013 at 11:01 pm
Springfield based Try & Save has been rumored to move in if the evil corporate raiders decide that there is no ROI coming to Emhurst.

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