Delhaize selling Bottom Dollar Food
Delhaize Group, parent company of Salisbury-based Delhaize America, has agreed to sell all of its Bottom Dollar Food’s store locations, according to a press release sent out Wednesday night.
Bottom Dollar Food is also based in Salisbury, but all of its 66 stores are in Ohio, Pennsylvania and New Jersey.
According to Christy Phillips-Brown, a Delhaize spokeswoman, approximately 20 Bottom Dollar Food employees work in Salisbury. She said those employees will be able to apply for other corporate positions within Delhaize. She said there are currently about 50 open positions within Food Lion and Delhaize America.
According to the release, the stores, and associated lease liabilities, are being sold to Aldi Inc, based in Germany, for $15 million. It is expected the stores will stay open as Bottom Dollar Food until the end of the year.
“After that time, Bottom Dollar Food will close the stores and retire the banner’s operations,” the release states.
Around 2,200 employees work at Bottom Dollar Food’s stores, according to a separate press release from Bottom Dollar Food.
“Upon the closing of stores, Bottom Dollar Food will offer every associate severance, and eligible associates will be offered career transition services,” the release states.
The sale is expected to be completed by the end of the first quarter of 2015.
Last week, Meg Ham was named president of Food Lion after Beth Newlands Campbell decided to leave the company for ”personal and professional reasons.” Ham was formerly the president of Bottom Dollar Food.
In August, the Post asked Delhaize America about reports that the company was considering selling Bottom Dollar Food, but the company declined to commment on the reports at the time.
Delhaize Group is headquartered in Belgium.
The sale will leave Delhaize America with just Food Lion and Hannaford, based in Maine. In recent years, the company has put more and more focus on its Food Lion chain. In 2013, Delhaize sold 155 of its stores under the Reid’s, Sweetbay and Harveys banners.
“This decision was difficult given the impact on our associates, customers and communities in which we operate,” Gene Faller, vice president of retail operations for Bottom Dollar Food, said in the release, “We want to thank our associates, customers and communities for their support over the past four years.”
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