Ralphs Loses $125.7 Million in Quarter

Ralphs Grocery Co. on Friday reported a $125.7-million second-quarter loss as it wrote off the huge restructuring costs associated with its merger with the owners of Alpha Beta and other supermarket chains.

Most of the loss reflects the refinancing debt, the closing of stores and merging of operations, and the remodeling of about 80 stores, Ralphs spokesman Jan Charles Gray said.

The Compton-based company, which operates 368 Ralphs, Alpha Beta, Boys and Viva stores, said the restructuring costs of about $116 million were in line with expectations.

The merger was completed in June when Yucaipa Cos., which operated Alpha Beta, Food 4 Less, Boys and Viva stores, purchased Ralphs to create the largest supermarket chain in Southern California. The merged company took the Ralphs name.

Although the second-quarter results reflect some of the company’s combined operations for the first time, comparisons to the same quarter last year were difficult and not meaningful because of the one-time charges and several other factors, the company said.

For example, the results for the three-month period ended July 16 include only four weeks of the merged company’s operations. Eighty-three of 180 former Alpha Beta, Boys and Viva stores have been converted to Ralphs.

Sales for the second quarter reached $857.3 million, up sharply because of the additional stores.

“Although only four weeks of the new company’s operations are reflected in the financial statements reported today, we are pleased with the initial results,” Chief Executive Byron Allumbaugh said.