Crain's Chicago Business reports that Yucaipa Cos. seems to have emerged as the most likely buyer of Chicago-based Dominick's Finer Foods from Safeway.
Yucaipa, which is controlled by financier Ron Rurkle, actually sold Dominick's to Safeway four years ago for $1.8 billion. It is expected that the chain has been sufficiently devalued that it now will go for less than $500 million.
Yucaipa, which is controlled by financier Ron Rurkle, actually sold Dominick's to Safeway four years ago for $1.8 billion. It is expected that the chain has been sufficiently devalued that it now will go for less than $500 million.
- KC's View:
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Sell high, buy back low.
Sounds like the right approach to us.
If it does acquire Dominick's, Yucaipa will have its hands full. It will have to re-energize a beaten employee base, bring traditional and favored products back into the stores, and create a sense of enthusiasm and anticipation among shoppers.
It won’t be easy. But it'll be fun.
