Prospectus Issued, Price Chopper Reportedly Exploring Sale Option
July 2016 | FOOD TRADE NEWS
Schenectady, NY-based Golub Corp., whose 135 supermarkets trade as Price Chopper, is reportedly exploring a sale of its company, several sources have reported.
The family-owned retailer, which was founded in 1932, has issued a prospectus and bids have been received by potentially interested buyers. Sources tell us that Albertsons is very interested in the company and we’ve been told that both Tops and Kroger may have submitted bids, too.
After more than 80 years of Golub family leadership, the regional chain made a key managerial shift earlier this year when it named Scott Grimmett as CEO of the company. Former chief executive Jerel “Jerry” Golub was moved to vice chairman. The company’s patriarch and former CEO, Neil Golub, remained chairman. Grimmett joined Price Chopper in 2012 as executive VP and COO after a 37 years career at Safeway.
That Price Chopper is reportedly exploring a sale of its company isn’t that surprising. Like many conventional supermarket operators, particularly region chains, the fiercely competitive and diverse landscape has created competitive and financial challenges. In the past two years, Price Chopper began a new upscale more perishables-oriented format, Market 32, to differentiate itself from its competitors. Currently there are nine Market 32 locations in New York, Massachusetts and Connecticut. Two new “from the ground up” Market 32s will debut later this year in Oxford, CT and Fort Edward, NY.
“The Golubs are among the first families of supermarket retailing,” said a former executive of the company. “They run very good stores and are pillars of the community in the Capital Region of New York. “But the last few years have been a test for them. Some of the stores looked tired and their merchandising was kind of vanilla. Market 32 was supposed to be the catalyst to change that course. And while they are very nice stores, I don’t think they’re getting the return they hoped, at least at this point.”
According to one vendor who has called on Price Chopper for more than 20 years, the timing seems right for a sale. “Neil Golub, a great man and a tremendous leader, is nearly 80 years old. His cousin, Jerry, has had his responsibilities scaled back and David Golub (another cousin) is out of the business. There’s too much competition and too many big companies in the game with deep pockets and staying power. Regional operators like Harris Teeter, Roundy’s and The Fresh Market have been sold in recent years, both to strategic and financial buyers. The industry consolidation will continue and Price Chopper would be a very attractive play.”
Price Chopper’s annual sales are estimated to be $3.6 billion. The retailer, which operates stores in Connecticut, Massachusetts, New Hampshire, New York, Pennsylvania and Vermont, employs 22,000 associates who collectively own 47 percent of the company’s privately-held stock
http://best-met.com/news/prospectus-issued-price-chopper-reportedly-exploring-sale-option/
Logged
