Ingles Market 1Q Profit More Than Doubles
Asheville, N.C., Ingles Market today said its first-quarter profit more than doubled, rising to $5.1 million, or 21? a share, from $2.4 million, or 10? a share, a year earlier. Gross profit increased 6.5% to comprise 25.4% of sales, vs. 25% the year before. Comp-store sales grew 4.7% for the quarter.
After failing to file its 2004 annual report and first-quarter report on time, the supermarket chain was warned that its stock could be de-listed from the Nasdaq Stock Market. Ingles must provide information related to an informal SEC inquiry, and also file all reports on time through Dec. 31, 2005, in order to maintain its Nasdaq listing.
Toys “R” Us Sold for $5.7 Billion
Wayne, N.J., Add another billion-dollar retail transaction to the history books. Toys “R” Us, the original category killer, agreed to be bought by a consortium of two different private equity firms and Vornado Realty Trust. The trio, which will be equal partners in the deal, agreed to pay $5.7 billion for the toy chain. The investors, Vornado, Kohlberg Kravis Roberts, and Bain Capital Partners, agreed to pay $5.7 billion for the toy stores as well as the Babies “R” Us stores. The chain had originally hoped to split the two business, and focus on the faster-growing Babies.
The deal once again brings attention to the valuable real estate holdings at some struggling retailers. While Toys “R” Us has been steadily losing the market-share battle to Wal-Mart over the years, its leases are increasingly valuable. According to reports, the trio of new owners will continue to operate Toys “R” Us as a toy chain for the foreseeable future. Reports also indicate that Toys “R” Us president John Barbour will stay on board.