Minneapolis-based Supervalu announced late Wednesday that it was selling 21 of its 38 Farm Fresh Food & Pharmacy locations to Kroger and Food Lion for $43 million.
Ten of the stores will be sold to Kroger's Harris Teeter brand, eight will go to the Kroger Mid-Atlantic Division and three will be sold to Food Lion.
"Exiting the Farm Fresh banner will enable us to allocate greater resources and energy toward the strategic growth of our wholesale business," says Mark Gross, Supervalu president and CEO. "This decision was not taken lightly, given the impact on our employees and the communities we serve, but we strongly believe this decision is in the best long-term financial and strategic interest of our business."
The company says it expects the buyers to offer positions to Farm Fresh employees. If it, it will offer severance to eligible workers.
Food Lion says the three locations it purchased will remain open as Farm Fresh stores until the transaction is complete, which is expected in May. Pharmacies at all locations will also remain open through the transition and will be operated by Food Lion on completion of the transaction.