UFCW 324 Communications / News
Local Reacts Cautiously to News of Albertsons Sale
Less than two years after locking out 20,000 employees for 141 days and forcing loyal customers to patronize local competitors, Albertsons announced today that it will sell its nationwide retail grocery and drug stores to three companies for a total of $17.4 billion in cash, stock and assumed debt. The UFCW represents about 110,000 Albertsons workers in the U.S. and Canada, about 6,500 of whom belong to Local 324.
The move comes amidst a flurry of assessments, even by Albertsons executives, that the company has failed to win back customers who found alternative places to shop during the lockout of 2003 - 2004. For months, industry analysts have also blamed the weak customer base in Southern California, for the company's poor performance. The resulting stagnant stock prices and grim forecasts finally prompted management to seek the sale option.
Supervalu, Cerberus and CVS will each acquire a sizeable chunk of the Idaho-based retailer through a complex exchange of stocks, cash and the assumption of Albertsons debt.
For its part, the Union is reacting with cautious optimism, pointing to its friendly relationship with Supervalu. "This company has a Union tradition in other parts of country that we hope is a good indicator of what we can expect. It [Supervalu] is no push-over, but they have integrity. We're counting on that," said President Greg Conger.