RETAIL / RESTAURANTS : Food 4 Less Raises $75 Million to Expand Supermarket Chain
Food 4 Less Supermarkets has raised $75 million to continue the aggressive expansion campaign it began after acquiring the 142-store Alpha Beta chain two years ago.
The company, based in La Habra, raised most of the money when parent Food 4 Less Holdings Inc. sold to the public $50 million worth of notes. The remaining $25 million was borrowed from banks.
The supermarket chain plans to use the money to improve and expand the chain. Besides Alpha Beta, the company also operates Food 4 Less, the Boys, Viva, Cala, Bell and Falley’s stores in California, Kansas and Missouri.
Four new Food 4 Less warehouse stores are opening in Southern California in the next two months. They are among 11 that the company plans to open during its current fiscal year, which ends in June.
“We believe that $75 million in equity and debt proceeds, together with cash flow from operations, give Food 4 Less the financial strength and flexibility to continue our growth plan and provide for future working capital needs,” President George Golleher said.
