STAR-BULLETIN / 1999
Fleming Cos., the major grocery wholesaler to Hawaii, will be sold to C&S Wholesale Grocers.
Fleming sale OK’d
The local operation is working
as usual through the sale
A federal judge in Delaware yesterday approved the sale of Fleming Cos. Inc., the largest U.S. grocery wholesaler, for about $400 million to C&S Wholesale Grocers Inc.
The Fleming division in Hawaii is still operating as usual and Brian Christensen, division president, said he has no new information on how the local operations might be affected by the change of ownership.
In mid-July, Fleming Hawaii notified the state Department of Labor & Industrial Relations that its 237 employees will be terminated Sept. 10 as a result of the sale. There is no change from that position, Christensen said yesterday.
Vermont-based C&S has not said how many, if any, of the Hawaii employees it might hire once it takes over the ownership.
Fleming, which filed for bankruptcy court protection in April, is selling the grocery-distribution business to focus on its remaining Core-Mark convenience-store supply operation.
The sale was expected to close Aug. 23.
Fleming said C&S was the only party to make a qualified offer for the business, but the deal still hinged on approval of the bankruptcy court and financing by C&S.
A Fleming spokesman said Thursday that the company has not made a final decision whether to sell San Francisco-based Core-Mark.
Fleming filed for bankruptcy protection in April after cutting ties with its largest customer, Kmart Corp. It became Kmart's exclusive distributor for perishable goods in 2001, a deal it valued at $4.5 billion per year.
But the coup fizzled when Kmart's fortunes sagged and it closed hundreds of stores. Fleming cut off deliveries to Kmart when the retailer fell $78 million behind in paying its bills.
As questions grew about Fleming's financial health earlier this year -- even before Fleming filed for bankruptcy in April -- many of its customers made other arrangements.
