Supervalu shares sink on report of deal glitch

Article by: MIKE HUGHLETT , Star Tribune
Updated: November 29, 2012 - 10:49 PM

A private equity firm that is a rumored buyer is said to have hit snags while trying to raise funds.

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royal2012Nov. 30, 12 3:46 AM

Unions are bankrupting another company.

teddygNov. 30, 12 6:23 AM

Royal, and your evidence that its a union problem and not a debt problem is ....?

cman2500Nov. 30, 12 6:35 AM

Credit is tighting up the Best Buy deal is also in jeopardy and so it begins.

gwbuddyNov. 30, 1210:25 AM

Simple Solution. Supervalu should immediately file for Bankruptcy. This would enable them to: Erase ALL of their debts, Void ALL of their Union contracts, Eliminate Properties and Employees that are NOT productive, etc. A Leaner, Financially Healthy Supervalu would then be an attractive buy. The Private Equity Firm could also fetch a Bargain-Basement price in Bankruptcy court too. I don't understand WHY the Supervalu management hasn't done something yet. Management needs to get moving soon, or Supervalu could end up like Hostess did. Liquidated and Out-Of-Business.

sek2undrstndNov. 30, 12 1:12 PM

"Potential lenders are balking because they're concerned over how Supervalu will manage the increased debt load as its revenue shrinks, Bloomberg reported, citing unnamed sources. Lenders also are pressing Cerberus to put more money into the deal than the firm is willing to." ........ Maybe the lending firms are wising up to the schemes perpetrated by private equity firms; load a company up with debt, declare bankruptcy which forces the debt onto the lending institutions which redistribute that debt to their other customers (middle class) in the form of higher fees, and then walk away with millions in fees. If I was a lending institution, I would make the private equity firm personally responsible for the debt not the company they are using to leverage the debt. At least that way, the people who are benefiting from the deal will also suffer the losses if the deal goes south.