Safeway Stores may have found a buyer for its beleaguered Dominick’s chain. The Yucaipa Cos. is rumored to be interested in buying back the 113-store Chicago-area chain it sold to Safeway in 1998.
Observers outside the company speculate that Yucaipa could bring back Dominick’s former management to revitalize the chain. Neither Safeway nor Los Angeles-based Yucaipa returned calls for comment.
Pleasanton, CA-based Safeway put Dominick’s on the block last fall after contentious labor negotiations (Xtra Nov. 26). Safeway had threatened to close stores if union workers called a strike. The two extended existing terms until July. Safeway is expected to make an announcement next week. It reports quarterly earnings on May 1.
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