Photos
Jewel-Osco parent company Supervalu on Thursday announced it will sell the grocery store chain — along with its Albertsons, Acme, Shaw’s and Star Market chains — in a $3.3 billion deal.
Jewel-Osco’s Oak Forest store is located at 5616 159th St . Tinley ParkJewel-Osco store is located at 17117 Harlem Ave.
The grocery stores, plus affiliated in-store Osco and Sav-On pharmacies, are being sold to a consortium of investors led by Cerberus Capital Management, according to the Minnesota-based Supervalu.
The deal, which includes $100 million in cash and $3.2 billion in debt, is expected to close this spring, according to the Chicago Tribune. The five grocery store chains will be acquired by Cerberus affiliate AB Acquisition, the paper reported.
After the sale, Sam Duncan will replace current CEO Wayne Sales. Supervalu will continue to own its wholesale grocery business, the Save-A-Lot discount chain and grocery chains including Cub, Shop N’ Save and Hornbacher’s.
“The transactions announced today represent the successful culmination of the in-depth strategic review process we commenced this past summer,” outgoing CEO Sales said in a press release.
Supervalu reported a loss of $1.04 billion for fiscal 2012, which included a $519 million operating loss. Sales also declined 3 percent, to $27.9 billion.
Want more local business news, delivered straight to your inbox? Sign up for our daily email newsletter.
XYZ
9:49 am on Tuesday, January 15, 2013
Pretty sure that last sentence is not accurate.. Sales didn't decline $27.9BB, they were $27.9BB
Persephone
1:28 pm on Tuesday, January 15, 2013
Good catch, XYZ. Sales declined 3%, to $27.9 billion. In fairness, I would imagine most journalists are much better with words than they are with numbers.
Lauren Traut
1:37 pm on Tuesday, January 15, 2013
XYZ,
Thanks for that. I double-checked the Trib article, and you're totally right. Thanks for keeping us on our toes!
The article has been corrected.
Thank you!
Lauren Traut
Associate Regional Editor
Darnell
10:53 am on Tuesday, January 15, 2013
The way this chain has bounced around among different owners, how long before Jewel-Osco disappears?
Tamarack
11:49 am on Tuesday, January 15, 2013
Jewel has been a huge disappointment for the last year or so. Every time I shop there seem to be fewer and fewer choices. The layout must not have been done by anyone who shops, cooks, or organizes a kitchen. They have been going downhill for a while now. No one is obligated to provide a quality store, of course, but it's sad that sometimes the only motive for a business is to make money, with absolutely no interest in doing a good job. True success is doing both. I am sorry to see Jewel's decline.
Mike F.
3:32 pm on Tuesday, January 15, 2013
I mainly shop at Walt's, Food 4 Less and Aldi. About the only thing I really buy at Jewel anymore is ice cream. They always have a couple of brands on sale. They're still better than Dominick's though. If Mr. DiMatteo and his son were still alive, they'd be disappointed with their family for selling the business.
Harry Callahan
9:09 am on Saturday, January 26, 2013
Over the years Jewel has survived mainly on name only,at one time,Jewel had very good employees from managment down then the turnovers began, it started up top with upper managment then the first time being sold to American Stores,believe me Jewel in the late 80;s and 9o's were operated by a group of jagbags that eventually affected the customers.
Tinleyjoe
12:28 pm on Tuesday, January 15, 2013
I bet the CEO had received a raise and a huge bonus. Im sure they are doing this to break the union workers.
Richard DeVries
1:14 pm on Tuesday, January 15, 2013
I don't see why people shop there. Overpriced on 98% of there stuff. I only go there for soda...
Mike F.
3:52 pm on Tuesday, January 15, 2013
Wasn't Cerberus the investment group SuperValu sold the Chicago area Cub Foods stores to when they acquired Jewel?
Darnell
4:58 pm on Wednesday, January 16, 2013
Yes. The sales were made to appease govt. regulators so Supervalu wouldn't have a monopoly on grocery sales in the Chicagoland area and so the deal would go thru. I know they still own 73 stores. It's a complicated web when you read about the parties involved.
Mike F.
5:08 pm on Wednesday, January 16, 2013
I knew that, but not a lot of the stores that opened up in Cub Foods' place stayed open longer than a year. I used to live not far from two Cubs when I had an apartment in Burbank. There was the one over by Ford City and one on Harlem in Bridgeview. Neither of the stores that went in those locations after Cub closed lasted very long.
Darnell
5:04 pm on Wednesday, January 16, 2013
Cerberus sold the Cubs to other operators. Here's a WIKI link that untangles the web and how it played out.
http://en.wikipedia.org/wiki/Cub_Foods
K.B.C.
7:14 pm on Thursday, January 17, 2013
I thought Kroeger's were suppose to be buying Jewel out? So does that mean that in the spring there will be no more Jewel? Will they just close then?
Mike F.
10:43 pm on Thursday, January 17, 2013
I suspect we'll find out within the next couple of months what will happen to Jewel. I could see them closing a few stores on the Southwest Side/southwest suburbs, like these ones: 103rd & Kedzie, 103rd & Cicero, 95th & Roberts Rd, 127th & Harlem, 171st & Harlem.
Kroger may take over some of the stores that close and make them Food 4 Less, but I can't see that happening in Oak Forest. That'd be redundant.
Frank Cunat
6:09 am on Monday, January 21, 2013
Regardless of what others think, I still find bargains at Jewel. Example: paid 99 cents for a spread that normally sells for about $3. This was just last week and was not an advertized item. Thank God for the Oak Forest store. We also heavily rely on Osco for our prescriptions.
Tony Fiorenzo
9:19 am on Saturday, January 26, 2013
Last time I shopped there was with a gift card. I needed a new air filter for my furnace/ac. The filter cost $8, quite expensive. I never shop there because I can get all items elsewhere, far cheaper. It will be sad to see that building vacated when it disappears. Doubt anything will go in it, we are too far gone. I drove down Oak Park Ave yesterday and noticed 3 business' have disappeared in the past month and their buildings stand vacant. Our politicians have sold us down the river with their outlandish spending over the decades. Common sense has made way for madness. Sad state of affairs.