Kroger takes over Farmer Jack

Kroger takes over Farmer Jack

Cincinnati-based Kroger Co. said it reached a deal to acquire 20 Farmer Jack stores the stores from the Great Atlantic & Pacific Tea Co., based in New Jersey. However, the future of 46 other Farmer Jack stores, remains in limbo. Analysts say bidders for other Farmer Jack stores could include Nash Finch, Spartan and independent grocers.

Farmer Jack has begun to lay off part-time workers at existing stores, spokeswoman Angie Bournias said, but declined to comment specifically about the Kroger deal. The sale is expected to close in July, Kroger officials said. Kroger declined to disclose terms of the agreement, including how much it paid for stores.

For weeks, Farmer Jack has been liquidating inventory and eliminating such amenities as mail service and money transfers. It also has been closing pharmacies and transferring prescription services to competitors CVS and Walgreens. Kroger is expected to pick up prescriptions at stores it acquires.

There is also no guarantee that Kroger will keep the newly acquired stores open. Some suspect they might change banners to Kroger at some stores and close others and hope the business goes to nearby Kroger stores.

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Published 29-06-2007 (11:02) by Karen Willoughby

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