By George Anderson
Marsh Supermarkets announced yesterday it has hired Merrill Lynch to pursue strategic alternatives, including a possible sale, for the company.
Don Marsh, chairman and CEO of the chain, said in a released statement: "During the past several months, management has been working diligently to reduce costs during a time of increasing competition, and while we believe our initiatives will improve profitability, our responsibility is to consider the best interests of our employees, the communities we serve and, above all, our shareholders. One of the strategic alternatives that we believe should be considered would be the possible sale of the company to the right party. For this reason, we have authorized Merrill Lynch to investigate the potential of such a transaction as an integral part of our considerations."
As to likely buyers, Bill Bishop, president of Willard Bishop Consulting and RetailWire BrainTrust panelist, told the Indianapolis Star, "Most of the big players in Indiana (Meijer, Kroger and Wal-Mart) are ruled out."
More likely candidates, said Mr. Bishop, would be regional players such as Schnucks or Giant Eagle that are looking to expand.
Moderator's Comment: Why has Marsh's performance been off? What will a buyer need to do to turn the business around? - George Anderson - Moderator