The Detroit News reports that the Great Atlantic & Pacific Tea Co. (A&P) is reconsidering its plan to sell off its Farmer Jack chain of 71 stores in Michigan, which seem to be showing some unexpected strength.
"We are considering what the right approach will be," the News quoted company chairman Christian Haub as saying. "Our stronger financial position allows us to take whatever time is necessary ... to restore profitability and thus ongoing operations. The (stores) continue to improve and have viable positions going forward."
It had been expected that Spartan Stores would acquire Farmer Jack, but Spartan backed off the possible acquisition just a couple of weeks ago. A&P had gotten the United Food and Commercial Workers (UFCW) to accept a pay and benefits cut contingent on the sale of Farmer Jack, but it is unknown whether the union would accept the same cuts if A&P retains the division.
"We are considering what the right approach will be," the News quoted company chairman Christian Haub as saying. "Our stronger financial position allows us to take whatever time is necessary ... to restore profitability and thus ongoing operations. The (stores) continue to improve and have viable positions going forward."
It had been expected that Spartan Stores would acquire Farmer Jack, but Spartan backed off the possible acquisition just a couple of weeks ago. A&P had gotten the United Food and Commercial Workers (UFCW) to accept a pay and benefits cut contingent on the sale of Farmer Jack, but it is unknown whether the union would accept the same cuts if A&P retains the division.
- KC's View:
- If A&P is going to keep Farmer Jack, it better not delude itself that that chain doesn’t need fixing. To compete in this market, the company needs to find new ways to be relevant to its shoppers…
