By George Anderson
Yucaipa wants a solid return on the $150 million it has put into Pathmark and the investment firm now has its own man, former Rite Aid chief financial officer John Standley, to lead the company in the direction it wants to go.
Mr. Standley was named as chief executive of the grocery chain to replace Eilleen Scott. In addition to his work at Rite Aid, Pathmark's new CEO has worked in finance jobs for several Yucaipa-owned grocery businesses. He also served as CFO for Fleming Foods.
Harvey Gutman, senior vice president, retail development for Pathmark, told Newark's Star-Ledger, "Yucaipa has a terrific track record. John is someone who contributed to that track record."
"There's no question in my mind Yucaipa in their business model says, 'We're going to stick dollars into the company and bring in people we feel will help us accomplish what has to be done,' " said Harvey Whille, president of United Food and Commercial Workers (UFCW) Local 1262, which represents 7,200 Pathmark employees.
Burt Flickinger III, president of the Strategic Resource Group, was enthusiastic about the prospects of Mr. Standley leading Pathmark. "It's a real coup for the company because he's a terrific strategic thinker," he said.
Moderator's Comment: What will it take to get Pathmark turned around?
Pathmark's sales have been flat and it has lost money over the past year. Yucaipa has been seen as white knight since it agreed to invest $150 million in the chain five months ago. - George Anderson - Moderator