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Supervalu to Sell Jewel-Osco Stores

Deal is expected to be finalized this spring.

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.

Oswego has two Jewel-Osco locations: 2540 Us Highway 30 and 3795 Orchard Road.

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 including Cub, Shop N’ Save and Hornbacher’s.

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

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

Dawn January 10, 2013 at 09:34 PM
Don't take my Jewel.....
Jeri January 10, 2013 at 11:28 PM
I heard this earlier in the day and I am surprised this did not happen sooner. The buyers are totally different and will provide different results with their decisions. Unions broke their back and all the students stocking and ringing registers paid high dues that really did not require a union help. If our employees were good responsible and dependable employees unions were not necessary with those job requirements. Sad day but saw it coming.
Walt Hines January 11, 2013 at 03:17 AM
Heard they were closing many stores, Oswego's name was mentioned. Sad day for taxpayers and the school district.
Cattlehauler January 11, 2013 at 10:12 PM
Last time this outfit bought out a group of grocery stores they closed over a hundred. So how long before the under performing Orchard store closes and joins all the empty units on that side of town? Of course the Village of Oswego has hired a economic firm to give them business attracting idea's.
Ann S. January 12, 2013 at 08:12 PM
Are you implying that the unions forced Jewel to pay too much to their employees? Do you know what the average pay rate is for Jewel employees? Believe me, no one is getting rich by working at Jewel (at the store level, that is). We are a Jewel family and, for the most part, Jewel has been a good employer. They provide decent insurance and benefits but nothing that would be considered over the top. My husband has been employed by Jewel for close to 30 years and his current annual salary is 32,000. Do you think he is overpaid? He is a department manager with excellent evaulations, customer compliments, and has only called in sick one time in 30 years (and that was 25 years ago). Again, do you think he is overpaid? Jewel pays its employees a living wage, comparable in the industry, which is what responsible employers do. They do not overpay their employees but do pay them a fair wage. Doesn't everyone deserve a fair day's wage for a fair day's work. However, shoppers do not realize that; they only see the difference in shelf prices. So they run to Walmart, without realizing that, in the long run, they will be paying more, much, much more, in one way or another. http://www.dsausa.org/lowwage/walmart/2004/walmart%20study.html http://www.thirdworldtraveler.com/Corporate_Welfare/WalMart_Welfare.html
Jeri January 12, 2013 at 11:10 PM
Labor relations carries a heavy hand. No he is not over paid. Food is a recession proof item because we all still need to eat. So the prices go up packaging smaller. People do slowly navigate to cheap cruddy food if necessary. I can not afford Jewel. I do go competitor. Unions do limit the versitalness(?) of an organization. It is within any industry. We do not need stockers and cashiers paying 1 hour of wages per week to a union. Our youth needs to learn how to be an employee without hindering the company.
Jeri January 12, 2013 at 11:10 PM
Every job has a job value also. What is its worth?

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