Fleming Puts Rainbow Foods on the Block

MINNEAPOLIS - Fleming Cos. has put its 43-store Rainbow Foods unit on the block, according to an article in the Minneapolis Star-Tribune.

A prospective bidder cited in the article said the chain is expected to sell for about $160 million. In 2000, Fleming was reportedly seeking $375 to $400 million when it tried to sell the chain to Albertsons. Rainbow's revenue has fallen from $1.2 billion in 1998 to an estimated $900 million last year.

Possible bidders for the chain, based in Hopkins, Minn., include Roundy's, Nash Finch and Cub Foods, but several area observers said they believe Rainbow Foods will be broken up and sold piecemeal.
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