Cub Foods Seeks Sale as Single Unit
Twin Cities grocery chain Cub Foods is hoping to be sold off as one unit rather than piecemeal, the Star Tribune of Minneapolis has reported, and Hy-Vee is not a suitor.
The chain, part of Supervalu Inc., was part of the retailer-wholesaler's sale last month to grocery distributor United Natural Foods Inc. (UNFI). At the time of the sale's announcement in July, Providence, R.I.-based UNFI revealed plans to "over time … divest Supervalu retail assets in a thoughtful and economic manner." Supervalu had already divested its Farm Fresh banner at that time, and in September, the company agreed to sell 19 of its 36 Shop 'n Save grocery stores, most of which were located in the St. Louis area, to Schnuck Markets Inc.
Anne Dament, EVP of Supervalu, who heads Cub Foods, stressed to the news outlet that selling the complete chain in one transaction is important to Supervalu, noting that "Cub will be Cub – we're not closing them," and "[i]deally, we would find one buyer." The parent company's executives also are willing to lose wholesale business to the Stillwater, Minn.-based chain if a buyer decides to look elsewhere for its supply needs.
However, one speculated buyer, West Des Moines, Iowa-based Hy-Vee, is reportedly not interested. CEO Randy Edeker told the news outlet that the chain is "going to stay on a steady growth plan that’s manageable."
It's likely to take several months before Supervalu finds a buyer for Cub Foods' 78 stores, the Star Tribune reported.
Minneapolis-based Supervalu serves customers across the United States through a network of 3,606 stores composed of 3,495 wholesale primary stores operated by customers serviced by the company’s food distribution business and 111 traditional retail grocery stores operated under three retail banners in three geographic regions. Supervalu has about 23,000 employees. The company is No. 18 on Progressive Grocer’s 2018 Super 50 list of the top grocers in the United States.