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DETROIT-The parent company of the Farmer Jack and Food Basics grocery store chain says it is considering selling some of its grocery stores in its Michigan division. Great Atlantic & Pacific Tea Co. officials told a meeting of store managers late last week a select number of stores are going up for sale but did not say which stores are for sale or when sales would be completed.
Local real estate and grocery industry experts say about 30 stores, including all 10 Food Basics in Michigan, are the most likely targets for sale. A&P has about 100 stores in the Midwest, mostly in Michigan, under the Farmer Jack or Food Basics names. About 88 of the stores are in the metropolitan area. Most of the real estate is leased. Industry insiders say as many as 30 of the Farmer Jack/Food Basics stores could be sold.
Last month, a Lehman Brothers report estimated Montvale, NJ-based A&P could cut $30 million from its losses by selling or closing its Farmer Jack and Food Basics stores in Michigan and Ohio. Like most supermarket chains, A&P is struggling with falling sales and increased competition from Wal-Mart and other newcomers.
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