bamaprincess
03-25-2009, 03:51:53 PM
From the Montgomery Advertiser:
Bruno's may close all stores | montgomeryadvertiser.com | Montgomery Advertiser (http://www.montgomeryadvertiser.com/article/20090325/BUSINESS/903250338&referrer=FRONTPAGECAROUSEL)
Bruno's may close all stores
By Cosby Woodruff Although Bruno's Supermarkets said it is still searching for a buyer and has not decided to close its remaining stores, this week it has been taking steps for the possible liquidation of all its grocery stores in two months.
Finance experts were pessimistic about the stores' chances, saying it will be difficult for Bruno's to find a buyer during the current economic downturn and nearly impossible to find financing to allow it to continue operating.
That means the chain could close the remainder of its stores by mid-May.
Bruno's announced last month that it would close 10 stores -- including four in the central Alabama area -- as soon as merchandise could be cleared. On Tuesday, the chain insisted those are the only stores closing for now.
Still, Bruno's notified the Alabama Department of Economic and Community Affairs that it is considering closing the remaining stores by May 17 if no buyer is found.
"Bruno's has no current plans to close stores beyond the 10 stores whose closings have already been announced and were approved by the bankruptcy court," the company said in a news release.
"However, because other Bruno's stores will close if they are not sold, to comply with federal law, Bruno's has notified its employees of the possibility of store closings. Bruno's is actively involved in efforts to sell its stores and preserve its employees' jobs."
John Jaherra, a finance professor at Auburn University, said Bruno's will not have an easy time finding a buyer.
"Economically, in terms of the general market, it could be very difficult," he said.
It is possible, he said, if Bruno's can find a bargain hunter.
"It could be viewed as a distress sale," he said. "There might be somebody out there looking to expand, and buying a network of stores might be a good idea."
In that case, Bruno's might get some value out of the company as a functioning business. Otherwise, it turns into a true liquidation sale that nets only the value of things like real estate and fixtures.
Three Montgomery area stores were not on the earlier closure list. Bruno's operates stores at 1635 Perry Hill and at 9168 EastChase Parkway. It also operates a Food World store at 1860 East Main Street in Prattville.
The company did not return calls seeking comment on the number of area workers who might be affected, but the stores average about 35 workers.
Bruno's may close all stores | montgomeryadvertiser.com | Montgomery Advertiser (http://www.montgomeryadvertiser.com/article/20090325/BUSINESS/903250338&referrer=FRONTPAGECAROUSEL)
Bruno's may close all stores
By Cosby Woodruff Although Bruno's Supermarkets said it is still searching for a buyer and has not decided to close its remaining stores, this week it has been taking steps for the possible liquidation of all its grocery stores in two months.
Finance experts were pessimistic about the stores' chances, saying it will be difficult for Bruno's to find a buyer during the current economic downturn and nearly impossible to find financing to allow it to continue operating.
That means the chain could close the remainder of its stores by mid-May.
Bruno's announced last month that it would close 10 stores -- including four in the central Alabama area -- as soon as merchandise could be cleared. On Tuesday, the chain insisted those are the only stores closing for now.
Still, Bruno's notified the Alabama Department of Economic and Community Affairs that it is considering closing the remaining stores by May 17 if no buyer is found.
"Bruno's has no current plans to close stores beyond the 10 stores whose closings have already been announced and were approved by the bankruptcy court," the company said in a news release.
"However, because other Bruno's stores will close if they are not sold, to comply with federal law, Bruno's has notified its employees of the possibility of store closings. Bruno's is actively involved in efforts to sell its stores and preserve its employees' jobs."
John Jaherra, a finance professor at Auburn University, said Bruno's will not have an easy time finding a buyer.
"Economically, in terms of the general market, it could be very difficult," he said.
It is possible, he said, if Bruno's can find a bargain hunter.
"It could be viewed as a distress sale," he said. "There might be somebody out there looking to expand, and buying a network of stores might be a good idea."
In that case, Bruno's might get some value out of the company as a functioning business. Otherwise, it turns into a true liquidation sale that nets only the value of things like real estate and fixtures.
Three Montgomery area stores were not on the earlier closure list. Bruno's operates stores at 1635 Perry Hill and at 9168 EastChase Parkway. It also operates a Food World store at 1860 East Main Street in Prattville.
The company did not return calls seeking comment on the number of area workers who might be affected, but the stores average about 35 workers.