Struggling- Acme's Owner Switches CEOs
The grocery chain's most recent quarterly report raises the question of whether it might be up for sale.
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Acme Markets parent company SuperValu Inc. on Monday replaced president and CEO Craig Herkert with board chairman Wayne Sales, less than three weeks after the grocery chain's dismal quarterly report.
Acme operates stores in Devon and Paoli as well as throughout the greater Philadelphia region.
"We will take significant cost out of the business, and move with urgency in our retail food business to lower prices and create points of sustainable differentiation for our customers," Sales said in a statement from the company.
In the report July 12, the company reported falling sales, vowed to cut costs and said it planned to withhold investor dividends. Moreover, its stated plan to "explore strategic alternatives" was characterized by The Philadelphia Inquirer as "corporate parlance for measures that often include courting buyers for the company."
SuperValu's stock rose $0.25 to $2.24 Monday, about a 13 percent increase. The stock is still worth less than half of what it was, $5.29, just before the quarterly report came out.
Mike
10:05 pm on Monday, July 30, 2012
Acme's union was its downfall long ago
TERes
10:32 pm on Monday, July 30, 2012
While I hate to see this business struggle, I'm not surprised. I used to shop at the Paoli Acme all the time until I discovered all the other wonderful grocery stores we have in the area. However, just about two weeks ago I went into the Acme on Leopard Road for a few items. I was so disappointed. Their customer service leaves much to be desired. Just about everything I shopped for was much more expensive than say Wegmans, Giant or Pathmark. I won't be back.