Four of Nash Finch Co.’s top executives will lose their jobs after Spartan Stores completes its buyout of the Edina-based grocery wholesaler, according to a regulatory filing Thursday.
A $1.3 billion purchase of Nash Finch by Michigan-based Spartan Stores, another wholesaler, was announced in July and is expected to be completed by year’s end.
In a filing with the Securities and Exchange Commission, Nash Finch said that at the request of Spartan it “provided a notice of termination” last week to Alec Covington, Nash Finch’s CEO; Robert Dimond, chief financial officer; Kevin Elliott, chief operating officer for wholesale and retail; and Calvin Sihilling, chief information officer.
Their termination date is Dec. 31, except for Sihilling, who will be retained through January 2014. Covington will be an adviser to the new company on an “as-needed basis” after his termination, the filing said.
The executives are being terminated pursuant to their “change of control” agreements with Nash Finch, meaning they won’t walk away empty-handed.
A filing with the SEC shows that Covington should be paid $17 million, including $8.5 million in deferred compensation; Dimond will get $3.9 million, including $1.4 million in deferred compensation; and Sihilling will get $3.8 million, including $1.5 million in deferred compensation. Information for Elliott was not available.