Pathmark Receives $150M in Funding
Carteret, N.J., Pathmark Stores Inc. received a $150 million infusion of cash from Yucaipa Cos. LLC, a Los Angeles-based private-equity firm. Yucaipa will buy 20 million newly issued shares of Pathmark, representing about 40% of the grocer’s common stock.
The deal, expected to close this summer, includes a 5-year management agreement under which Yucaipa will provide guidance on marketing, operations, finance and other strategic elements. Following the closure of the deal, Yucaipa will nominate five new directors to add to Pathmark’s current board of six directors.
Pathmark plans to use the funding to upgrade existing stores and open new locations.
Australia’s Foodland Up For Sale
Melbourne, Australia, Australian grocer Foodland Associated Ltd. put itself up for sale after Metcash Trading Ltd. made a hostile bid for the company, according to a Wall Street Journal report. Foodland is in discussions with several other suitors.
Foodland may consider selling its New Zealand assets separately. The grocer previously had announced plans to spin off its plum New Zealand business by August. Australian retail bruisers Coles Myer Ltd. and Woolworths Ltd. are rumored to be interested in Foodland’s New Zealand business, but both have declined comment.
Ultimate Electronics Plans Closings
Denver, Ultimate Electronics plans about 30 store closings, about half the number of its total store count of 62. The chain will leave markets in Iowa, South Dakota, Texas and Utah and Kansas City, Missouri, when the closings are completed by June 30. About 900 employees will lose their jobs through the closings, and another 65 employees of the central office will be terminated.