Great Atlantic May Sell Canadian Stores
Montvale, N.J., Great Atlantic & Pacific Tea Co., owner of A&P supermarkets, has hired JPMorgan Chase & Co. to find a buyer for its Canadian grocery-store business, according to reports. The sale of the 236 Dominion and Food Basics stores in Ontario could raise more than $1 billion, sources familiar with the sale said. Potential buyers include both Stellarton, Nova Scotia-based Sobey’s Inc. and Montreal-based Metro Inc., Canada’s second- and third-largest supermarket chains. Canada’s biggest supermarket chain, Toronto’s Loblaw Cos., may also be interested in the purchase, according to published reports.
Montvale, N.J.-based Great Atlantic posted a loss of $75.3 million for its fiscal third quarter, the sixth straight quarterly loss. The sale of its Canadian grocery-store business could raise money to help pay down debt and refurbish stores to bolster future earnings.
Wild Oats Markets Posts Q1 Loss
Boulder, Colo., Wild Oats Markets suffered a net loss of $1.2 million in the first quarter, partly due to expenses related to a change in lease accounting and the opening of new stores. The company earned $2.1 million in the same quarter last year. Same-store sales declined 0.3% as total sales increased 5% to $278.1 million.
Circuit City Responds to RadioShack Statement
Richmond, Va., Circuit City Inc. today disputed a statement issued by RadioShack, arguing that it has not relinquished its rights to the exclusive use of the RadioShack brand in Canada until 2009. RadioShack’s statement, released yesterday, said that it had won a lawsuit against Circuit City and was creating a subsidiary to oversee its Canadian expansion. Circuit City’s InterTAN unit currently runs RadioShack stores in Canada, but the two retailers are in a legal quarrel over the rights to the name.