Supervalu stock tumbles as it shops for buyer

  • Article by: MIKE HUGHLETT , Star Tribune
  • Updated: July 12, 2012 - 9:07 AM

The Cub Foods parent hired Goldman Sachs to explore "strategic alternatives" after profit came in far less than expected. It also will stop paying a dividend.

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william2mnJul. 11, 12 5:43 PM

I always find it staggering that companies will pay millions of dollars a year to executives who run a company into the ground and yet all we hear is how teacher make too much money for educating the future of the country. Talk about a messed up system.

demfreedomJul. 11, 12 6:03 PM

The CEO who expanded Super Value for the sake of getting bigger bonuses probably got tens of millions for his giant mistakes and incompetence. Such is the life of corrupt and stupid corporate executives.

BroonieJul. 11, 12 6:26 PM

Cub is trying to price itself out of the market on some things. Green Giant frozen veggies in plastic pouches...$2.09 per each when SprawlMart is charging $1.32 and $1.48 for the same thing! Yes, I know WalMart is non-union, but come on!

cookielady47Jul. 11, 12 6:30 PM

William2MN Who do you suppose educated the excutives that you are refering to? If you want to take a poke at excutives why not take a look at the salaries that are paid to those in charge of the teachers unions. Moral decay is partially responsible for the mess that we are in and most of that can be laid at the feet of the liberals that claim to be do gooders

rickcmnJul. 11, 12 6:53 PM

Union, poor service at the distribution center, unions, unions unions. I knew people that drove for them. One person worked hard, got hide deliveries done without screwing around. He then would get heat from other drivers for making them look bad. This is a true story no BS. A BIG PART OF THEIR PROBLEM IS THE UNIONS.

gopherdudeJul. 11, 12 7:06 PM

Exploring Strategic alternatives and sale is code word for preparing for Bankruptcy and possible liquidation but most likely consolidation and closings. There is value in the Cub brand, not so much for Albertsons and Jewel Osco. As Roundy's and Cub are both finding out it is hard to compete with big bad bully big blue and red taking all of the Grocery market share away. Target and Wal-Mart, and Aldi at your front door in your "neighborhood" poaching off all of the Grocery dollars and customers means a small carcass to pick from. That and the labor differential from Union labor to non-union labor is what management will point to and blame for the price differences in stores. The suspension of the dividend is a precursor to there stock being delisted and ending up on the pink sheets. The Union workers at Supervalu, Albertsons, and Cub better prepare for the loss of a whole lot of jobs, wages, seniority, benefits, all of it. They take it all away when they go into bankruptcy and that is where this thing is headed. Even if the Unions were to offer concessions now it is to late if management has Goldman Sachs involved, the end game is to get rid of store leases and Union contracts. This is what happens when the stock price collapses. Management will blame the workers and place all of the blame at the Union wages as the major root cause of all things wrong. Never mind the fact that it was leveraging everything to buy out Albertsons and Jewel Osco and taking on all of there debt when they were running away from the Grocery business were the real root causes. They should have been cranking out Save-A-lot format stores at the level Aldi was 3+ years ago if they really wanted to get ahead of the game.

lady612Jul. 11, 12 7:07 PM

Broonie, Mall-Wart has the opportunity to make money off of other types of items, so it can charge less for groceries. Grocery stores don't have other types of items to sell to "make up for it". And seriously - you're quibbling over $.50/pkg? I don't buy groceries at Target or Wal-Mart or any of those places, because they undercut the grocers. It's more important to me to have actual grocers and other types of businesses in my neighborhood, so I pay the "premium". At least my neighbors have jobs.

markc1Jul. 11, 12 8:03 PM

With big buisness, remember how they used to "earn" their profits? these days it's all "take from the workers" and have a P.O. box in another country so they don't have to pay any taxes.

Sean_OlsenJul. 11, 12 8:21 PM

Herkert "earned" a $700,000 bonus last year for achieving a 20% decline in the stock price and completing a fourth consecutive year of same store sales declines. Now, he's poised to cash in when the company gets sold while thousands more SV workers will get pink slips.

AirForceGuyJul. 11, 12 8:34 PM

It is quite angering to me to continue to read people bad mouth unions and insinuate that unions caused this by demanding higher wages and if that's an outrageous thing to ask for. Where is the accountability on behalf of the people who run the company? Uneducated, ignorant people blame labor because they never bothered to learn what unions are and simply repeat what Fox News tells them to think. That's a fact. Some unions are a problem, but MOST are not. In fact the overwhelming bulk of ALL unions are actually GOOD for the economy. It infuriates me that some (OBVIOUSLY non-union people) want to destroy everything and reduce themselves to a commodity for employers to choose from to meet their goals instead of being viewed as a valuable, SKILLED WORKER. I will not live in the kind of country you people are trying to create, and I think the majority of Americans reject your views on unions. Poor management is actually usually the #1 cause of companies going out of business. It all starts (and ends) with management. When managers are not willing to accept responsibility for their own decisions then America has a bigger problem than "greedy" unions.


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