SOUTHERN CALIFORNIA LABOR TALKS TO RESUME
LOS ANGELES — Negotiations between seven locals of the United Food and Commercial Workers Union and three Southern California employers are scheduled to resume today after an 11-day cooling-off period. Talks broke off abruptly April 4, shortly after the employers issued a statement saying they would support each other if one of them was struck by the union. The union said the cooling-off period was suggested by the federal mediator monitoring the talks. The contract, which covers approximately 55,000 workers at Supervalu-owned Albertsons, Kroger-owned Ralphs and Safeway-owned Vons, expired March 5 and is being extended on a day-to-day basis.
WEIS PLANS $72.5 MILLION IN CAPITAL SPENDING
SUNBURY, Pa. — Weis Markets here intends to spend $72.5 million in capital projects in fiscal 2007, with around two-thirds of the money going toward construction of two new stores, Jonathan Weis, vice chairman, said at the company's annual meeting here last week. The retailer also plans 10 store expansions and nine store remodels. Weis spent about $100 million in fiscal 2006. The company also intends to step up the addition of in-store health clinics during the year, Norman S. Rich, chief executive officer, said.
WAL-MART WINS GAG ORDER ON SECURITY EMPLOYEE
BENTONVILLE, Ark. — A security employee fired by Wal-Mart Stores last month must stop discussing his former employer, according to a temporary restraining order the retailer won in circuit court last week. The order temporarily bars Bruce Gabbard from disclosing trade secrets or confidential information about Wal-Mart and compels him to provide the retailer with names of “all persons to whom he transmitted … any Wal-Mart information” since Jan. 15, according to the Associated Press. Gabbard was fired last month for allegedly recording phone calls between company officials and reporters. Gabbard revealed that Wal-Mart's board of directors had discussed selling the Sam's Club division in an attempt to raise the company's stock price, according to the Wall Street Journal. Wal-Mart said that thorough strategic reviews are “just good governance.”
TESCO LOOKING FOR SITES IN SACRAMENTO: REPORT
LOS ANGELES — Before Tesco has opened a single store in Southern California, Phoenix or Las Vegas, it has begun looking at other cities, including Sacramento, Calif., published reports said last week. The Sacramento Business Journal said Tesco has hired a Sacramento-based broker to help it find sites for its Fresh & Easy Neighborhood Market stores.
BIDDERS DROP OUT OF SAINSBURY TAKEOVER EFFORT
LONDON — The group of private equity giants pursuing retailer J. Sainsbury here bailed out last week after failing to meet conditions — reportedly an acceptable purchase price — set by Sainsbury's board. “The board explored with the consortium whether the key pre-conditions attached to the proposals were capable of being satisfied or could be revised, but the consortium concluded that this was not possible. As a result, the consortium decided to cease discussions,” Sainsbury said in a statement. The consortium initially included Kohlberg Kravis Roberts, CVC Capital, Blackstone and Texas Pacific Group.
AHOLD REPURCHASES $148 MILLION IN DEBT
AMSTERDAM — Ahold last week said it had repurchased around $148 million in outstanding notes and bonds as part of a debt reduction program. The company said the repurchased notes and bonds represent approximately 8.9% of the outstanding amount due on bonds maturing in May 2008 and 11.7% remaining due on bonds maturing in December 2007. The buyback leaves outstanding amounts of $1.3 billion on the 2008 bonds and $161 million on the 2007 notes.
