my friend is a manager of the save-a-lot operations in Missouri. He says things are so screwed up that the franchisees are screaming mad. I didn't realize that Supervalu only owns a fraction of the save-a-lot locations. They franchise out the rest. He says Kroger is fierce competitor.
He heard that Albertsons is a mess. And CUB foods is having tough competition from Target. But he said that CUB is also franchised out? Is that true? Does Supervalu own any CUB foods locations?
Also mentioned that east coast operations hit hard by Storm Sandy. And the Jewel locations in the midwest are starting to get hit by competition from Walmart.
So what is your overall outlook? Do you think Bankruptcy might end up being an option?
What do you really hear about Wayne Sales. I think he has been there a long time. And one of the bozos who approved the Albertson's buyout that took this company under.
What is your outlook?
there is only one thing that can be said "Employees know the writing is on the wall.... and could that spell B-A-N-K-R-U-P-T-C-Y ??
I do not trust this management team nor its board of Directors.
They can easily come up with some excuse why Bankruptcy turned out to be their only option after exhausting all other options.
What really angers me are these idiotic buyouts where the consumer suffers with higher prices as they have to pay for taking on enormous debt levels. If they would just leave these companies alone with little to no debt, the savings could be passed on to the consumer and they don't risk raising prices on these same consumers just to make debt payments. Stop these leveraged buyouts. Hedge fund #$%$ and banks are at fault. And cry when they need government rescues.
what a scam!
For these reasons, let Supervalu go bankrupt and let the vultures take pieces of the carcass. Maybe then the consumer will shop there again.
Fyi, last time I looked a couple of months ago Cub had 73 stores and 44 were franchised. I think they are under pressure from TGT and others but they still have 18% of the Minneapolis-St Paul market which is a #1 market share and twice their closest competitor.
I worked for American Stores many years ago. Great Company.
During the subsequent sale of the company, the disasters began. Complete mismanagement moving forward by Albertson's team and Supervalu (clueless people). Decided to leave the company a few years after Supervalu took over. Albertson's previous owners and managers sold a decaying, mismanaged business at top dollar to Supervalu (labeled suckers). They were wholesalers and had not clue how to run retail. And then they started to compete against (with the newly acquired retail stores) their wholesale customers. Nightmare!! What were they thinking.
Well, Albertson's management and shareholders laughed all the way to the bank!!
Also want to mention, Albertson's cooked the books by buying decaying competitors stores. Didn't anyone from Supervalu look at the store inventory. Now I see they are closing a lot of those nasty locations. Took my money and ran on the American Stores buyout. And couldn't believe the mess Supervalu got themselves into. Shareholders should be so mad that Wayne Sales is still there. He was part of the Supervalu acquisition team of Albertson's. They ripped you off!
I really don't see how Supervalu is going to get out from under this mess. AS I still think they will file for Bankruptcy. The real only solution to clean everything up. And start fresh and lean machine.
But get rid of Wayne. He's has no clue what is going on or how to run these operations. I hear he is trying to learn a lot on the road.
many suspect the recent rise to offset the dismal conference call on Thursday. I agree. There isn't going to be any good news. More fluff. If you want to speculate here, I would watch for new year lows around $1.50 for a risk position. They really could file Bankruptcy at any time if they feel that they exhausted all other efforts. And as for Cerberus, they don't save shareholders. They are distress asset players at 10 or 20 cents on the dollar. They either wipe out shareholders in a packaged deal, or they wait for more declines in the operations and buy out the distressed debt at pennies on the dollar. Don't fool yourself otherwise.
The supermarket business is very competitive now. And even the dollar stores are having problems now.
Any questions, let me know. Don
I don't think that these leaders are that stupid. I think the Albertson buyout was a way to extract large chunks of cash form an otherwise declining industry. The size and initial revenue figures for Supervalu (went from around $19B to $36B) also allowed their stock to go up 5X from $8 to $40.
Honestly, this has to be part of a long term play to keep money churning for an otherwise dismal sector. Nobody in their right mind thought that size alone could allow you to compete with Walmart.
Maybe I give these guys too much credit at Supervalu, but Cerberus certainly knew how this would end up going down.
If Supervalu owned the only liquor store on island inhabited by alcoholics they would screw it up.From what I understand all of the other banners are as screwed up as Albertsons but that is hearsay on my part I only know Albertsons.We have the momentum of a runaway freight train,we need a clean slate and a new direction.But with 6 billion in debt and empty stores bankruptcy is closer than SVU will admit.I think we need a new board of directors top to bottom.If announcement is made on sale or partial sale of company stock will spike if I still owned stock I would sell then in that euphoric moment, take your money and run I do not see a long term under these bozos.