BP to Sell U.S. Convenience Stores
New York City, BP Plc. said on Thursday it would sell all 700 of its U.S. owned-and-operated convenience stores to franchise owners, eliminating nearly 10,000 employees.
The planned sale, which will take about two years to complete, states that potential buyers will sign 20-year franchise agreements requiring them to sell BP or ARCO branded fuels.
The move is a continuation of BP’s announcement in October to simplify its operations, a BP spokesman said. The sale will affect the jobs of 9,500 convenience store workers, 350 business-support staff and approximately 100 people within its pipelines and logistics operations.
Large distributors will also buy some of the retail outlets, the company said.
Kellwood rejects (second) buyout bid
St. LOUIS (AP) Apparel maker Kellwood has rejected a $543.9 million buyout offer from Sun Capital Securities Group on Tuesday.
This is the second time in one month Kellwood has rejected the investment firm’s proposal.
Sun Capital, which owns a 9.9% stake in Kellwood, first made its bid of $21 a share in September. Kellwood’s board rejected it in October, saying the offer undervalued the company and was not in the best interest of shareholders.
On Monday, Sun Capital reaffirmed its same proposal and said it was prepared to take the offer straight to shareholders.
Kellwood, however, is standing by its previous decision.
“The Kellwood board strongly believes in the company’s ability to successfully execute its strategic plan and provide greater value to its shareholders than Sun Capital’s proposal,” Kellwood said in a written statement.
Kellwood shares rose $1.85, or 11.2 %, to close at $18.36 Tuesday. But that is still about 19 percent below the price Sun Capital is offering. Kellwood has traded in a 52-week range of $14.21 to $34.84.
Earlier this month, Kellwood announced plans to sell its Smart Shirts business and related real estate assets in separate deals generating a combined $161 million. Proceeds will be used to repurchase shares and reduce debt.
Kellwood is one of the nation’s largest apparel makers with branded and private-label products. The brands it owns include Sag Harbor and Phat Farm, while it produces clothing under licensing agreements for brands that include Calvin Klein and Claiborne.
Tesco opens in Vegas, next stop Phoenix
LAS VEGAS Tesco followed up its U.S. debut last week with a second round of openings on Nov. 14 in Las Vegas. Tesco opened five Fresh & Easy Neighborhood Markets in the Las Vegas area, adding to the six it rolled out in Southern California on Nov. 8.
Tesco has also scheduled its first openings in the Phoenix market for Dec. 5 with four stores slated to open that day. The chain also plans to enter San Diego in late November or early December. Tesco chief marketing officer Simon Uwins said the retailer hopes to have 50 Fresh & Easy stores open in California, Nevada and Arizona by February 2008.