Published on: March 1, 2005Published reports say that C&S Wholesale Grocers is negotiating for the acquisition of 140-unit Pathmark Stores, a purchase that could cost it an estimated $800 million.
The New York Post reports that it could take several weeks to close any deal, though the negotiations are said to be at a delicate stage where they also could fall apart at any moment. There also is said to be the possibility that knowledge of the C&S interest could prompt another bidder to step in.
While located in the densely populated New York metropolitan area, Pathmark has suffered from declining sales and profits, and has been on the sales block for several months.
- KC's View:
- The knock on C&S always has been that it is an efficiency-driven organization without the marketing and merchandising skills necessary to be really helpful to small independent retailers, beyond the ability to negotiate prices from a position of strength. If that’s true, you have to wonder if C&S would be a natural retailer, especially in New York.