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Farmer Jack Management Supports A&P's Strategic Restructuring Plans
DETROIT, MI - May 10, 2005-The local management of Farmer Jack, the Detroit-based food retailer, today expressed its support for the plans announced earlier today by its parent company, The Great Atlantic & Pacific Tea Company, Inc. ("A&P") to divest Farmer Jack and its other Midwest retail operations as part of a major strategic restructuring of its business.
In its announcement this morning, A&P said that while its Midwest operations have been improving, and although it believes those operations have significant profit and growth potential, the Company has decided to focus its attention and resources on its core operations in the Northeast and Mid-Atlantic regions, from southern New England to Washington, D.C. That decision, A&P said, would likely result in a lesser allocation of resources to its Midwest operations than would be required for them to realize their full potential. Accordingly, A&P said, it had decided that the best course of action, for its business in the Midwest and for the Company as a whole, was to divest its operations in Michigan and Ohio.
Farmer Jack President Mike Carter said: "We respect A&P's decision and will work closely with corporate management and its financial advisors to create a new ownership structure for Farmer Jack that will ensure our continued presence and vitality as a leading grocery chain serving the southeastern Michigan market.
"Farmer Jack has been serving the greater Detroit community for more than 75 years. We are visited by nearly a million Farmer Jack customers every week, have a strong market presence in our region, and are today the only major Detroit-based grocery chain.
"We are proud of our heritage, proud of our team, committed to our tradition of quality fresh food and great customer service, and confident that under a new ownership structure, Farmer Jack will continue to serve our customers in Detroit and southeastern Michigan for many years to come. Personally, I am tremendously excited about Farmer Jack's future," Mr. Carter concluded.
During the divestiture and sale process, approximately 70 Farmer Jack stores in the Tri-County area that are well-performing-thanks in part to store remodels and program changes over the past two years-will remain in operation. Other, underperforming Farmer Jack stores, however, along with 10 Food Basics discount stores also owned by A&P, will be sold or closed over the next few months. Employees of those stores will be notified of those plans, and customers will be informed of alternative Farmer Jack shopping locations.
Farmer Jack is operated by The Great Atlantic and Pacific Tea Company Inc. (A&P, NYSE:GAP), one of the first supermarket chains in North America.
Investor Contact:
William J. Moss
Vice President, Treasurer
(201) 571-4019
Media Contact:
Richard P. De Santa
Vice President, Corporate Affairs
(201) 571-4495
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