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BOISE, Idaho -- Albertsons, Inc. said yesterday that it has terminated all discussions about the potential sale of the entire company. The grocer added, however, that to enhance shareholder value, it continues to be involved in discussions with several parties interested in purchasing its “underperforming assets,” but didn't identify specific properties.
Facing fierce competition from other conventional supermarket companies and Wal-Mart, Albertsons put itself up for sale in September.
In a Q&A with The Idaho Statesman, Albertsons c.e.o. Larry Johnston said, "Put simply, we did not receive a bid that we could accept." Instead of focusing on selling the company, Johnston said Albertsons would "continue to grow our profitable grocery business, create a more compelling shopping experience and [grow] our freestanding drug store business." Johnston added that he anticipated remaining at Albertsons' helm.
Woonsocket, R.I.-based CVS has also issued a statement saying that it has ended negotiations with the food retailer for its Sav-on and Osco drug stores. CVS, Supervalu, Cerberus Capital, and Kimco Realty Corp., were part of a consortium that made a bid to buy Albertsons for about $9.6 billion in cash and stocks.
Albertsons' divisions and subsidiaries operate approximately 2,500 stores in 37 states across the United States and employ about 240,000 associates. Among its banners are Albertsons, Acme, Shaw's, Jewel-Osco, Sav-on Drugs, Osco Drug, and Star Market, in addition to Super Saver and Bristol Farms, which are both operated independently.