Foodarama sees financial impact from Big V FREEHOLD, N.J., Nov 30 (Reuters) - Supermarket operator Foodarama Supermarkets Inc. (AMEX:FSM - news) said on Friday that a decision by its food cooperative to acquire another cooperative member now in bankruptcy proceedings may have an impact on its financial results, but it's too early to say what the impact would be.
Foodarama said an agreement on Nov. 16 by Wakefern Food Corp. to acquire the assets of Big V Supermarkets was a material event, but that its effect on Foodarama's earnings remains to be seen, said chief financial officer Michael Shapiro.
Big V and Foodarama belong to Wakefern food cooperative, which provides distribution and other support to its members. Big V, a privately-held supermarket operator, filed for chapter 11 bankruptcy protection last year. It also filed earlier this year to withdraw from the cooperative, but the court ordered it to pay a penalty for leaving the cooperative to make up for lost volume.
Foodarama shares ended at $42, close to a 52-week high of $43, on Thursday when they last traded. Its shares have risen about 171 percent so far this year.