Supervalu Inc. said Wednesday that it will close about 60 underperforming or nonstrategic supermarkets, including 27 stores in its biggest traditional chain, Albertsons.
The struggling Eden Prairie-based supermarket operator will close 19 Albertsons outlets in Southern California and eight more in other Western states. Supervalu operates almost 450 Albertsons in those areas.
The company also will close 22 of its over 1,300 deep-discount Save-A-Lot stores, and four of its 117 Acme outlets in the Philadelphia area.
The closings do not affect Cub Foods, the Twin Cities' largest supermarket chain, Supervalu spokesman Mike Siemienas said.
Supervalu estimates that by closing the stores, it will generate between $80 million and $90 million in cash over three years by monetizing real estate, eliminating operating losses and selling assets.
Supervalu has said it is looking at strategic options, and the company recently installed board member Wayne Sales as its new CEO.
In connection with the store closings, Supervalu expects to record a mostly noncash, pretax charge of $80 million to $90 million in its current fiscal year. It also expects to book a separate $10 million pretax gain from asset sales.
MIKE HUGHLETT
