Fleming agrees to sell five of its stores

Feb 12, 2003 12:00 PM, staff and wire reports

Fleming Companies Inc has entered into an agreement with Albertson’s for the sale of five Fleming stores. Three Food4Less facilities are in the Salt Lake City UT market, and two Rainbow Foods stores are in the El Paso TX market. Fleming also completed the sale of a previously announced Rainbow Foods store in Milwaukee WI to an independent Sentry Foods operator.

Net proceeds of about $12 million, including capital leases, are anticipated by Fleming for the six locations. The transaction with Albertson’s is expected to be completed within 60 days and is subject to closing conditions and completion of due diligence. Upon receipt, the company intends to apply the cash proceeds from these transactions to Fleming’s senior secured term loan balance.