TheDeal.com reports that Pathmark Stores, which went on the sales block last month, isn’t getting very much interest, and may ultimately be unable to find a buyer.
While the company says it has had a few offers, the firms that normally would drive such a sale – private equity firms such as Kohlberg Kravis Roberts (KKR) – have decided not to bid.
The problem seems to be that while Pathmark operates in the population-dense New York metropolitan area, it also has a lot of tough competition and its same-store sales have been either flat or down.
While the company says it has had a few offers, the firms that normally would drive such a sale – private equity firms such as Kohlberg Kravis Roberts (KKR) – have decided not to bid.
The problem seems to be that while Pathmark operates in the population-dense New York metropolitan area, it also has a lot of tough competition and its same-store sales have been either flat or down.
- KC's View:
-
The competition may be ample, but not nearly as tough as in other areas of the country; after all, Wal-Mart doesn’t have many supercenters competing against Pathmark.
It may be that the best thing Pathmark has going for it is its real estate.
