British high street retailer Marks & Spencer sold its US chain Kings supermarkets to a US investor group for £35.4 million (US$61.5 million). According to the UK retailer this deal completes Marks & Spencer’s restructuring programme.
Kings is a chain of 25 supermarkets in New Jersey and 1 store in New York. “The disposal of Kings is the last part of our programme to refocus Marks & Spencer. Kings is a strong brand with a committed workforce, but it doesn’t fit within our core business”, Ian Dyson, M&S’s finance director said.
In its business year to April 2005 Kings generated sales of US$405.9 million (£219.8 million) and an operating profit of US$4.2 million (£2.4 million). The deal is expected to close by the end of April 2006 and the new owner of Kings will be the US investor group consiting of Angelo, Gordon & Co., MTN Capital Partners LLC and Bruce Weitz. The latter is a veteran in US retailing with over 30 years of senior management experience with retailers such as Duane Reade Drugstores, First National Supermarkets, Wakefern food Corp./ShopRite Supermarkets and Price Chopper Supermarkets.