SuperValu will close around 60 Stores - Includes 27 Albertsons and 22 Save-A-Lot Locations

Shopping cart in parking lot - BSN

(Best Syndication News) - SuperValu Inc. (NYSE: SVU) announced that they will close around 60 grocery stores that are either underperforming or are non-strategic stores. The closures will include Save-A-Lot stores, Albertson’s stores, ACME stores, and more. The store closures will occur for most locations before December 1, 2012. A few store locations will still to be announced and all stores closures are expected to be completed by February 23, 2013.

SuperValu expects that closing the stores should create $35 million in cash within a year. Over the next 3 years, the company anticipates $80-90 million more in cash (pre-tax). The sale of the company’s assets is expected to be around $10 million for their fiscal 2013 year.

SuperValu has determined 22 Save-A-Lot store locations will close. The stores are located in Alabama, California, Georgia, Illinois, Missouri, Oregon, and Washington states.

Supervalu announced that they would close 27 Albertsons store locations with 19 of them located in Southern California. The local Albertsons store in Victorville on Bear Valley will be closing.

Four ACME stores will be closing and one Jewel-Osco location will close. Eight store closures have not yet been announced because the company is still undergoing contractual negations.

SuperValu operates around 4,400 stores, which includes around 1,101 retail stores, 1,336 hard discount stores, and 1,950 independent stores. Around 130,000 employees work for SuperValu.

The SuperValu (NYSE: SVU) shares closed today at $2.28, up $0.04 (+1.79%). After hours trading pushed the price to $2.33 per share.

By: Dave Reddy

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