So Long Albertson’s (Part 3)

By Shea Andersen, 1-23-06

These are tough times, Boise.

Not just for the suits at headquarters who will be getting walking papers (we don't include CEO Larry Johnston who will surely land in a soft, golden-parachute-y way) but for all manner of local businesses, governments and people who used to count on a big corporate "A" down the road.

Despite some hopeful headlines of days past (who can forget the over-the-rainbow tune of "Albertson's Could Stay In Boise Despite Sale"?) it looks like things will be a mite different down at what used to be corporate headquarters.

Why are we so recklessly certain about this? Because no one is saying anything different.

Yes, comforting statements are being made. No one worth their MBA is going to get away with painful truth-telling in these situations.

So, let's read some of the quotes out there in the media:

From Melissa McGrath's Idaho Statesman writeup this evening, we have Jeff Noddle of SuperValu (i.e., The New Boss) saying this:

“There are some functions that would remain in Boise and could very well service the whole combined company,� Noddle said. But SuperValu has not decied (sic) how many of Albertsons’ 2,500 corporate employees will remain in Boise after the sale is completed, Noddle said.

Let's put some emphasis here: "some functions." Of course he's not going to put a number to it. To do so would be shocking and create ill will very early in a protracted process of mothballing much of the Boise operation.

They did a little more analysis on TV, where KTVB Channel 7 business reporter Alyson Outen read past between the lines to file an aggressive report you can watch with a media player.

That TV channel got dissed for an on-camera interview with Albertson's officials today after airing an interview with a local financial analyst who said, loud and clear and on camera, what's being muttered around coffee shops in Boise today. If you're feeling aggrieved by the whole situation, it's worth the load-up time.

I'll go back now to The Big Promise made by Albertson's CEO-of-the-moment, Larry Johnston:

"We are also pleased that in addition to maintaining a presence in each banner's headquarter city (Jewel-Chicago, Acme-Philadelphia, Shaws-Boston, Albertsons-Los Angeles), SUPERVALU has stated that it intends also to maintain an important presence in Boise, Idaho for the foreseeable future."

That from Albertson's own press release you can read here.

Now, let's all recall where we've heard phrases like that before. Cue the flashback music, and read this interview Johnston gave to the Idaho Statesman when the deal with these same buyers broke down weeks ago.

Curiously absent: any definitive statement from Johnston saying these words: "We will stay in Boise."

So, would anyone care to wager on the exact duration of "the foreseeable future"?

Anyone want to defend the tax breaks given to Albertson's a year ago? See the beginning of that debate aired in the Associated Press, here.

Your job now: Find out which Albertson's store in your neck of the woods qualifies as an "underperforming store." Apparently there are about 655 of them out there, and the real estate investment firm Cerberus Capital Management and Kimco Realty took them all. You can bet they won't be getting misty as they shutter those stores and sell off the real estate. That's how they make money, after all, not by polishing apples.

Information about which stores qualify as "underperforming" tends to be closely guarded by the grocery business. But as a shopper, you might be able to have the same eye. Got an Albertson's in your neighborhood that just never has any lines or crowds in the parking lot? [End of article]