Sobeys Leave Provigo Board
brothers, who hold the second-largest stake in Provigo here, have resigned from Provigo's board of directors because of potential conflicts of interest with the distributor's other retail customers. David F. Sobey, chairman of Sobeys Inc., Stellarton, Nova Scotia, and Donald Sobey, chairman of Empire Co., a wholly owned subsidiary, own 24% of Provigo's stock.
Provigo said they resigned from the board because of possible conflicts of interest in Quebec, where both Empire and Provigo are expanding their retail grocery operations. Elected to the board to succeed the Sobeys are David Torrey, former vice chairman of RBC Dominion Securities, and Richard Riendeau, a senior partner in the law firm of McMaster Meighen here. Empire owns nine stores in Quebec and plans to open two more in 1995. Provigo operates 70 corporate Maxi and Heritage stores in Quebec, plus 150 corporate-owned and franchised Provigo Supermarkets and 980 franchised stores in the province. Empire executives declined comment on whether the company contemplates selling or keeping its 24% stake in Provigo.
Kash n' Karry Restructuring OK'd
TAMPA, Fla. -- Kash n' Karry Food Stores said last week the U.S. Bankruptcy Court for the District of Delaware confirmed its plan of reorganization. This clears the way for the company to complete its debt restructuring and emerge from its court-assisted reorganization as a public company.
Kash n' Karry expects the plan to become effective on or about Dec. 27, 1994. Kash n' Karry filed for Chapter 11 protection in November. The plan will reduce the company's debt burden and interest expense. It also will provide Kash n' Karry a substantial equity infusion through the restructuring of its senior fixed rate and senior floating rate notes, the conversion of its subordinated debentures into equity, and the purchase of newly issued stock for $10 million.
NAWGA VP Heads Coalition
WASHINGTON (FNS) -- Bruce Gates, vice president for public affairs of the National-American Wholesale Grocers' Association, has been named chairman of a regulatory reform coalition formed here last week.
The group, which is aligned with a wide range of business interests across a spectrum of industries, seeks a 100-day moratorium on new government regulations from President Clinton.
The coalition is the brainchild of Rep. Thomas DeLay, R-Texas, new House whip. DeLay said if the president did not comply, he would introduce legislation early in 1995 to declare a moratorium on new regulations.
Banks May Back Foodarama Debt
FREEHOLD, N.J. -- Foodarama Supermarkets here said it has received commitments from major New York banks to re-fund its institutional indebtedness of approximately $34.2 million.
Foodarama, which operates 20 stores is New Jersey, is attempting to overcome specified defaults on several financial covenants under its present loan agreements. Re-funding the debt would enable the company to pay off its former institutional lenders and transfer the debt to new lenders.
A company executive said current lenders are cooperating and are extending certain agreements until Dec. 30.
Michael Shapiro, Foodarama senior vice president of finance, said the commitments from the new banks contain "a number of conditions and, therefore, there are no assurances that the financing will be consummated."
He added, "Nevertheless, management is confident that either a refinancing or a restructuring of its present institutional debt will be completed."
Stop & Shop Gets Building OK
BOSTON -- The village of Roslyn, N.Y., has given the go-ahead to Stop & Shop Cos. here to proceed with the development of a 63,000-square-foot waterfront store.
Store construction was delayed when residents of this Long Island town about 10 miles east of New York City raised concerns about the amount of traffic it would create.
In a related development, the planning board of Springfield, N.J., has scheduled a hearing Jan. 17 on whether Stop & Shop can convert a former Saks Fifth Avenue into a supermarket. Town residents claim traffic congestion will result.