http://www.chicagobusiness.com /article/20130110/NEWS07/13011 9997/jewel-osco-to-be-sold-to- investor-group
I wonder if the Blue Island property was included in the sale. Maybe the new owners will do what's right and finally do something with the property.
Jewel-Osco to be sold to investor group
530 32 67 7
The Jewel-Osco at 1224 S. Wabash Ave.
January 10, 2013
The parent of Jewel-Osco said today it would sell that chain and several other businesses to an investor group led by Cerberus Capital Management L.P.
Jewel-Osco has about 180 stores, the vast majority in the Chicago area. The chain has about 25,000 employees.
In addition to Jewel-Osco, Eden Prairie, Minn.-based Supervalu is selling Albertsons, Acme, Shaw's and Star Market stores and Osco and Sav-on in-store pharmacies to the investor group.
Besides New York-based Cerberus, the buyer group includes Kimco Realty Corp., Chicago-based Klaff Realty L.P., Lubert-Adler Partners and Schottenstein Real Estate Group, Supervalu said in a statement. The deal is valued at $3.3 billion, the company said.
Stock in Supervalu Inc. jumped, with shares up 16 percent shortly after the market opened.
Supervalu has struggled for years to turn around its business. The broader supermarket industry has been facing growing competition from big-box retailers such as Target, drug store chains and even dollar stores. While bigger chains such as Kroger Co. have adapted by tweaking store formats and building customer loyalty through discount programs and improved offerings, Supervalu has scrambled to keep pace.
This summer, Supervalu fired its CEO and tapped Chairman Wayne Sales to lead a turnaround. The company said at the time that it was reviewing its options, such as putting itself up for sale.
Following the closing of the deal, Supervalu will consist of a food wholesaler, Save-A-Lot, and regional chains Cub, Farm Fresh, Shoppers, Shop 'n Save and Hornbacher's. The company, based in Eden Prairie, Minn., is expected to generate annual revenue of more than $17 billion, down from $35 billion. Supervalu said it will continue to work on cutting costs and fixing its business.