Gelson’s Markets parent Arden to explore possible sale
Arden Group Inc., the Compton parent of the upscale Gelson’s Markets chain, said Monday that it is considering selling the company or looking into other options.
Board members “initiated a process to explore and evaluate strategic alternatives, which may include a possible sale,” the company said in a statement.
Arden, which owns 16 Gelson’s across Southern California, said it retained Moelis & Co. as its sole financial adviser during the review.
The supermarket chain said it hadn’t made a decision to pursue any specific moves and said it had “no defined timeline” for its evaluation. It also declined to comment further.
In mid-day trading in New York, Arden stock was up nearly 20%, or $21.94 a share, to $133.19 a share.
Key players and new entrants in the Southern California grocery industry have been roiled by change recently.
In April, British giant Tesco said it would pull out of the U.S. and attempt to sell its 5-year-old Fresh & Easy grocery project. The short-lived El Segundo chain failed to make any money during its run.
Last month, discount supermarket company Aldi USA said it is “in the initial stages of discussions to potentially locate a warehouse” in Moreno Valley. The Inland Empire site would be the chain’s first entry into Southern California.
Also last month, online retail giant Amazon.com Inc. said it was expanding its AmazonFresh online grocery delivery service from Seattle to Los Angeles.
View larger map on latimes.com
ALSO:
Tesco to pull out of U.S. and sell Fresh & Easy markets
Discount grocer Aldi USA poised for move into Inland Empire
Amazon.com expands its grocery delivery service to Los Angeles
