FARM FRESH, Norfolk, Va., said it has elected not to pay the interest on its 12.25% senior notes due 2000, which was due last Wednesday. The company said it will skip the payment in order to preserve working capital. Securities analysts told SN the decision not to make the payment had been anticipated as a preliminary step to filing a prepackaged financial reorganization that will precede the chain's sale to Richfood Holdings, Richmond, Va. -- a process approved by an informal committee representing a substantial majority of the chain's senior bondholders. The sale is expected to close during the first quarter of 1998.
o the recall, Hudson Foods was purchased by Tyson Foods, Springdale, Ark.
WAREHOUSE CLUBS scored a legal victory last week when a federal judge ruled that Toys 'R' Us, Paramus, N.J., illegally conspired with manufacturers to keep toy prices artificially high. The judge also upheld a Federal Trade Commission ruling that found Toys 'R' Us had illegally forced manufacturers to sell popular items only to Toys 'R' Us and not to Costco, BJ's, Sam's Club or other warehouse-style competitors. Toys 'R' Us said it will appeal the judge's decision.
CASINO, the supermarket chain based in Saint Etiene, France, last week rejected another takeover bid from Caen-based rival Promodes. Casino's board instead recommended that shareholders tender their shares to Rallye, a Paris-based holding company that already owns 28% of Casino.
NESTLE USA, Purchase, N.Y., said last week it will voluntarily pull Nestle Magic candy off the market. Authorities are concerned that the product -- a hollow chocolate ball with a Disney toy inside -- could be a choking hazard for children. Nestle has insisted the product is safe and the Consumer Product Safety Commission said the toys are too big to choke a child. At least one chain, Stop & Shop, Quincy, Mass., has pulled the product off its shelves.
LAND O' LAKES, Arden Hills, Minn., said it will acquire Alpine Lace Brands, Maplewood, N.J. for $9.125 per share. The deal, subject to approval by both companies' boards and regulators, is expected to close in late 1997 or early 1998.
GENERAL MILLS, Minneapolis, said last week it would restructure its North American cereal operations, eliminating 235 jobs and closing three plants. Reducing capacity and costs were cited as reasons for the move.
