Struggling after releasing news of an earnings plunge, Supervalu Inc. is considering selling stores and has suspended its quarterly dividend.
During a July 11 investors conference call, Craig Herkert, chief executive officer of the Eden Prairie, Minn.-based supermarket operator, said the company’s earnings fell 45% during the last quarter to $2.88 a share on July 12.
Herkert said bankruptcy is not a part of the company’s strategic review, which includes plans to better compete with other grocery discounters, according to media reports.
Supervalu, which operates stores including Albertsons, Jewel-Osco, Save-a-Lot and Shaw’s, plans to institute aggressive price cuts.
According to Bloomberg.com, the company’s shares fell 35% to-date this year and put it on a course for its fifth consecutive yearly decline. Analysts say Supervalu hasn’t earned an annual profit since 2010.
In June, Supervalu publicized layoffs in its Albertsons California and Nevada stores. In a July statement, the company announced it would cut costs by an additional $250 million over two years.
The company is retaining the services of Goldman Sachs Group Inc. and Greenhill & Co. to review its options, according to news reports.
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