updated: 2/8/2006 1:22:43 PM
Indianapolis-based Marsh Supermarkets, Inc. (Nasdaq:MARSA) has announced that it will close its supermarket in Fort Wayne, the Savin*$ Store in Muncie, six Village Pantry convenience stores and the Trios Di Tuscanos restaurant in Noblesville by the end of this month.
The company says the closures are expected to save it more than $12 million each year. About 120 workers will lose their jobs as a result of the closures. Marsh Spokeswoman Myra Borshoff Cook talks about the cuts.
The company is also cutting about 25 jobs at its headquarters, including those of four officers. President and Chief Operating Officer David Marsh, Executive Vice President Arthur Marsh, Vice President Don Marsh, Junior and Senior Vice President Joseph Heerens are losing their jobs immediately.
The Board of Directors has also elected William L. Marsh Interim President and Chief Operating Officer as part of the restructuring.
A Marsh spokeswoman says the company is not ruling out future layoffs and store closures.
Source: Inside INdiana Business
INDIANAPOLIS, Feb. 8, 2006 -- Marsh Supermarkets, Inc. (Nasdaq:MARSA) (Nasdaq:MARSB) today announced several major steps in its ongoing restructuring process.
The Board of Directors has elected William L. Marsh Interim President and Chief Operating Officer. Bill Marsh has served as a director of the Company since 1991 and as Senior Vice President -- Property Management since August of 1997. He has been employed by the Company in various supervisory and executive capacities since 1974.
The Company also announced a reduction in force of approximately 25 employees at the headquarters office, including four officers: David A. Marsh, President and Chief Operating Officer; Arthur Marsh, Executive Vice President -- Mergers and Acquisitions; Don Marsh, Jr., Vice President -- Specialty Procurement and Joseph Heerens, Senior Vice President -- Political Affairs.
"We believe the changes in management are critical to the Company's transformation. We would like to thank each of the executives for their prior contributions to the Company and wish them well in their future endeavors," said the Board of Directors.
In addition to the staff reduction, the Company will reduce travel and overhead at the headquarters and close the Marsh Supermarket in Fort Wayne, the Savin*$ Store in Muncie, six Village Pantry convenience stores (four in Indianapolis and two in Anderson) and the Trios Di Tuscanos restaurant in Noblesville by the end of the month. SEE NOTE BELOW. Collectively, these actions are expected to save the Company more than $12 million annually. Previously, the Company announced the termination of the supplemental executive retirement plans that will reduce expenses by $3 million to $4 million annually.
"This is a time when the Company's management needs to focus their efforts on restructuring the Company's operations, reducing costs and improving profitability. We recognize that these efforts will require sacrifices at many levels, and it is important that the Company's management lead the way," the Board of Directors stated. They also reported that a review of the Company's store base and expense structure would be ongoing.
The Company expects to incur a fourth quarter charge for future cash expenditures of $5.8 to $6.8 million related to the reduction of jobs at the Company's headquarters.
Upon closing of the stores, the Company expects to record an additional charge for future cash expenditures of $6 to $10 million ($3.9 to $6.5 million net of tax), primarily related to future lease payments. The Company will also record a non-cash impairment charge in the third quarter of approximately $12.8 million before tax ($8.4 million after tax). These non-cash charges are related to the stores to be closed as well as other store locations and will bring the book value of these assets in line with their fair market value, as well as account for differences between future lease payments and expected subleases.
Marsh is a leading regional chain, operating 69 Marsh(r) supermarkets, 38 LoBill(r) Food stores, 8 O'Malias(r) Food Markets, 154 Village Pantry(r) convenience stores, 2 Arthur's Fresh Market(r) stores in Indiana and western Ohio. The Company also operates Crystal Catering Food Services(sm) which provides upscale catering, cafeteria management, office coffee, coffee roasting, vending and concessions, and Primo Banquet Catering and Conference Centers; Floral Fashions(r), McNamara(r) Florist and Enflora(r) -- Flowers for Business.
1827 East Memorial Drive
Muncie, IN 47302
#100 Marsh Supermarket
3701 Maplecrest Road
Ft. Wayne, IN 46835
14575 Mundy Drive (corner of Hwy 37 and 146th Street)
Noblesville, IN 46060
#422 Village Pantry
10950 Pendleton Pike
#391 Village Pantry
2040 East Washington Street
#435 Village Pantry
3731 South Madison Avenue
#488 Village Pantry
#380 Village Pantry
2202 Hanna Avenue
#520 Village Pantry
2724 East Washington Street
Source: Marsh Supermarkets