Pennsylvania based Merion Capital is suing to force Cerberus-Albertsons to pay even more for Safeway. Merion Capital owned 4% of Safeway and doesn’t think Cerberus paid enough and is now exercising its appraisal rights. Three other hedge funds, Magnetar Financial, Muirfield Capital and Brigade Capital, are reportedly about to make the same appraisal rights claim against Cerberus.
It’s been revealed that the Haggen takeover of 146 Albertsons and Safeway grocery stores, across five states, will include at least 78 Starbucks coffee shops.
Federal government created retirement insurance policing agency Pension Benefit Guaranty Corporation forced Cerberus to pay $212-million USD into the Safeway retirement plan. That’s on top of the mandated $48-million. The Wall Street Journal said Cerberus administrators refused to comment to them about it.
Updated list:
Arizona: In Lake Havasu, three Safeway and seven Albertsons are being switched over to Haggen. I suspect that eventually some will be shutdown, it doesn’t make sense to have that many grocery stores of the same brand in one place.
California: Arcadia Vons Pavillion SuperStore to be shutdown on 18 March 2015, at least 168 jobs lost! The 32 years old Hemet Vons shutdown on 28 December 2014, at least 55 jobs lost. Company administrators claimed it had nothing to do with the hostile takeover by Cerberus. Marina Del Ray Albertsons, shutdown by 26 February 2015, at least 80 jobs lost. Pleasanton Safeway HQ will layoff at least 26 people by 13 February 2015. San Diego Albertsons, shutdown by 26 February 2015, at least 63 jobs lost.
Colorado: Colorado Springs Albertsons shutting down in March. Cerberus administrators say it has nothing to do with their takeover of Safeway-Vons: “That store basically has not been profitable for quite some time, despite the best efforts of our company and associates there and the location…..That’s why we’re closing it.”
Oregon: In Lake Oswego, Albertsons being shutdown on 16 February, being taken over by Haggen in March. Cerberus administrators made the exact same claim as in their Colorado Springs shutdown saying “The store has not been profitable for quite some time.” This is interesting because according to local news reports there are only two grocery stores in the city! In Lake Grove, the Albertsons being switch over to Haggen. Safeway shutting down their Clackamas regional office, 91 jobs lost by March.
Texas: In East Dallas, an Albertsons was renamed Minyard Sun Fresh Market. Reports said the grand opening was delayed due to problems switching over the cash register system. A second East Dallas Alberstons is expected to make the changeover to Minyard Sun Fresh Market on 16 February. Only one of the three East Dallas Albertsons will remain Albertsons. One store manager said the changes are a direct result of the takeover of Safeway. Interestingly I found a report that said Cerberus swore there would be no name changes after the takeover of Safeway, but they failed to explain the sale of 12 stores to RLS Supermarkets.
Washington: In Kirkland, reports that Goodwill thrift store is taking over the now vacant Albertsons store. Haggen took control of the Monroe Albertsons. Safeway becoming Haggen in Gig Harbor and Tacoma beginning in March. Albertsons becoming Haggen in Olympia, Puyallup, Tacoma and Lakewood beginning in March. Albertsons becoming Haggen in Federal Way and Milton by June.
“That’s why we’re closing it.”