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Supervalu to Sell Jewel-Osco Stores

Deal is expected to be finalized this spring.

Jewel-Osco parent company Supervalu on Thursday announced it will sell the grocery store chain — along with its Albertsons, Acme, Shaw’s and Star Market chains — in a $3.3 billion deal.

Jewel-Osco’s Oak Forest store is located at 5616 159th St . Tinley ParkJewel-Osco store is located at 17117 Harlem Ave. 

The grocery stores, plus affiliated in-store Osco and Sav-On pharmacies, are being sold to a consortium of investors led by Cerberus Capital Management, according to the Minnesota-based Supervalu.

The deal, which includes $100 million in cash and $3.2 billion in debt, is expected to close this spring, according to the Chicago Tribune. The five grocery store chains will be acquired by Cerberus affiliate AB Acquisition, the paper reported.

After the sale, Sam Duncan will replace current CEO Wayne Sales. Supervalu will continue to own its wholesale grocery business, the Save-A-Lot discount chain and grocery chains including Cub, Shop N’ Save and Hornbacher’s.

“The transactions announced today represent the successful culmination of the in-depth strategic review process we commenced this past summer,” outgoing CEO Sales said in a press release.

Supervalu reported a loss of $1.04 billion for fiscal 2012, which included a $519 million operating loss. Sales also declined 3 percent, to $27.9 billion.

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K.B.C. January 18, 2013 at 01:14 AM
I thought Kroeger's were suppose to be buying Jewel out? So does that mean that in the spring there will be no more Jewel? Will they just close then?
Mike Fangman January 18, 2013 at 04:43 AM
I suspect we'll find out within the next couple of months what will happen to Jewel. I could see them closing a few stores on the Southwest Side/southwest suburbs, like these ones: 103rd & Kedzie, 103rd & Cicero, 95th & Roberts Rd, 127th & Harlem, 171st & Harlem. Kroger may take over some of the stores that close and make them Food 4 Less, but I can't see that happening in Oak Forest. That'd be redundant.
Frank Cunat January 21, 2013 at 12:09 PM
Regardless of what others think, I still find bargains at Jewel. Example: paid 99 cents for a spread that normally sells for about $3. This was just last week and was not an advertized item. Thank God for the Oak Forest store. We also heavily rely on Osco for our prescriptions.
Harry Callahan January 26, 2013 at 03:09 PM
Over the years Jewel has survived mainly on name only,at one time,Jewel had very good employees from managment down then the turnovers began, it started up top with upper managment then the first time being sold to American Stores,believe me Jewel in the late 80;s and 9o's were operated by a group of jagbags that eventually affected the customers.
Tony Fiorenzo January 26, 2013 at 03:19 PM
Last time I shopped there was with a gift card. I needed a new air filter for my furnace/ac. The filter cost $8, quite expensive. I never shop there because I can get all items elsewhere, far cheaper. It will be sad to see that building vacated when it disappears. Doubt anything will go in it, we are too far gone. I drove down Oak Park Ave yesterday and noticed 3 business' have disappeared in the past month and their buildings stand vacant. Our politicians have sold us down the river with their outlandish spending over the decades. Common sense has made way for madness. Sad state of affairs.

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