The 2020 Mid-Year Economic Update_long

Supervalu Proposes Corporate Structure Change

Company seeks to reorganize under holding company structure to further segregate wholesale and retail operations.

SUPERVALU Inc. (NYSE: SVU), Minneapolis, MN, is asking stockholders to vote on a proposal that would reorganize the company under a holding company structure that would further segregate the business’s wholesale and retail operations.

The move is in line with steps the company has taken over the past two years to strategically transform the business, the company said.

Supervalu said the holding company structure is proposed to:

  • Organize and further segregate Supervalu's wholesale and retail operations in an operationally efficient and strategic manner, including to separate the wholesale and retail operations held by Supervalu Inc., our current public company entity;

  • Facilitate the company’s previously announced strategic transformation plan to sell certain retail assets to third parties;

  • Better segregate the liabilities of the company into their respective business segments;

  • Increase Supervalu's strategic, business and financial flexibility; and

  • Enable the company to achieve its strategic transformation plan in a tax efficient manner that may facilitate the ability to utilize a material portion of Supervalu's capital loss carryforward, which could generate approximately $300 million of cash tax benefits for the Company over the next approximately 15 years.

Stockholders are asked to consider and vote on the proposal at the company’s upcoming Annual Meeting, the company said.

 

About the Author
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

By subscribing, you are agreeing to MDM’s Privacy Policy.

0

articles left

This is your last free article

Subscribe to MDM Premium today and get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.