Fleming Terminates Acquisition Agreement for Supervalu Facilities in Favor Of
More Economical Alternative
DALLAS, May 3 /PRNewswire/ -- Fleming (NYSE: FLM) today announced the
company has leased a new warehouse to serve Kmart stores in the Mid-Atlantic
and New England regions. The lease is subject to completion of due diligence.
In a related move, Fleming has terminated the acquisition of Supervalu's
warehouse facilities in Perryman, Maryland and Suffield, Connecticut in
accordance with the terms of the agreement.
"Our commitment is to meet our customers' needs with a low-cost operation
and we have been pursuing multiple alternatives in the region to ensure we
meet that objective," said Steve Davis, Executive Vice President and
President, Wholesale. "During negotiations and due diligence, it became clear
that our customers' best interests are going to be met under the terms
presented by the new facility."
"With this action, we continue on pace to serve the additional Kmart
business according to plan," said Davis.
Fleming is the industry leader in distribution and has a growing presence
in value retailing. Fleming's primary business is buying and selling
merchandise. The company serves approximately 3,000 supermarkets including
more than 700 North American stores of global supermarketer IGA and other
regional banners, 5,000 convenience stores and nearly 1,000 supercenters,
discount, limited assortment, drug, specialty, and other businesses across the
country. To learn more about Fleming, visit our website at http://www.fleming.com .
Safe Harbor Statement: This release includes statements that (a) predict
or forecast future events; (b) depend on future events for their accuracy; or
(c) embody projections and assumptions that may prove to have been inaccurate,
including expectations for years 2001 and beyond. These projections, forward-
looking statements, and the company's business and prospects are subject to a
number of factors that could cause actual results to differ materially,
including: adverse competition, sales declines and loss of customers, exposure
to litigation and other contingent losses, failure to implement strategic
initiatives according to plan or to achieve the expected results of such plan,
failure of the company to achieve necessary cost savings, and negative effects
of the company's substantial indebtedness and the limitations imposed by
restrictive covenants contained in the company's debt instruments. These and
other factors are described in the company's periodic reports available from
the Securities and Exchange Commission.
CONTACTS:
(Media) Shane Boyd 972.906.8824
(Investors-Equity) Meredith Anderson 972.906.8592
SOURCE Fleming
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Related links:
http://www.fleming.com
CONTACT:
media, Shane Boyd, +1-972-906-8824, or
investors-equity, Meredith Anderson, +1-972-906-8592, both of
Fleming
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