Delhaize sells three American chains, gets less than expected | RetailDetail

Delhaize sells three American chains, gets less than expected

Delhaize sells three American chains, gets less than expected

Delhaize has finalized the sale of its three smaller American chains (Sweetbay, Harveys, Reid's) and will get 246 million dollars (181 million euro) from Bi-Lo, slightly lower than agreed to.

Sold chains worth 1.3 billion euro

The deal had been announced in May 2013, one of the last major decisions from former CEO Pierre-Olivier Beckers and American CEO Roland Smith.

 

Judging by American standards, the three chains were too small, even though they represented a joint turnover of 1.8 billion dollars (1.3 billion euro), through 72 Sweetbay stores, 72 Harveys stores and 11 Reid's stores.

 

Purchase price lower than expected

Delhaize aims to focus its American efforts on Food Lion, Hannaford and its discount chain Bottom Dollar. According to the group, with a 2013 total turnover of 20.9 billion euro, Bottom Dollar has cut its losses last year.

 

The total sum for the three American chains is slightly lower than originally anticipated as Delhaize spoke of a 265 million dollar (195 million euro) price, but it finally received 246 million dollars.

 

Logistics center sold as well

In a separate sale, Delhaize sold off its Plant City (Florida) logistics center to C&S Wholesale Grocers for 28 million dollars (21 million euro). Only last year, it had stated it would hang onto Sweetbay's logistics center.

Questions or comments? Please feel free to contact the editors


WE keeps net profit stable despite lower turnover

10/08/2018

Dutch fashion group WE International saw its turnover drop 2.8 % to 275.8 million euro, but its net profit remained stable because of the selling of real estate.

Sports Direct buys bankrupt chain House of Fraser

10/08/2018

Sports Direct owner Mike Ashley has bought British department store chain House of Fraser, just hours after the 169 year old chain filed for bankruptcy.

Adidas wins in World Cup football

09/08/2018

German sports brand Adidas has had a victorious quarter because of the World Cup football. Total turnover rose 4 % to 5.26 billion euro, a hefty 3.2 billion coming from shoe sales. Operational profit climbed 17 % to 592 million euro.

Record turnover for Schoenen Torfs

07/08/2018

Belgian shoe store chain Schoenen Torfs has seen its turnover grow 7.6 % in 2017, but the company had to admit to a 9 % decrease in net profit. CEO Wouter Torfs aims for further growth online, in Wallonia and through cooperation with sneaker chain The Athlete’s Foot.

McGregor starts lawsuit against Reebok

01/08/2018

Reebok, sponsor of the Ultimate Fighting Championship, has released a clothing line with the name of the popular Irish fighter Conor McGregor. That is confusing, Dutch fashion chain McGregor complains.

New owner, new future for Men At Work

01/08/2018

Dutch fashion chain Men At Work has found a new owner for its home market stores, as did the Belgian branch before. Victory & Dreams holding, which also owns Miller & Monroe and Witteveen Mode, acquires the bankrupt chain and promises the survival of at least ten stores.