Bloomberg news is reporting that Supervalu is inching closer to selling off Albertsons to Cereberus Capital Management, a New York-based private equity firm.
The Wall Street Journal reported in early November that Cereberus was looking to ink a deal to take over Superavalu in the wake of the super market giant's dismal financial picture, including July's announcement that Supervalu's earnings had fallen 45 percent in its latest quarter, triggering $250 million in administrative and operational expense reductions.
Supervalu dragged its Boise operations through a series of layoffs including a round of finance department redundancies in January 2010, outsourcing of information technology positions in October 2011, and 130 more corporate positions this past February.
In all, Supervalu owns 33 Albertsons stores in Idaho, employing approximately 3,300 people in the Gem State.
Today, Bloomberg reported that "Cereberus may seek control of both Albertsons and Save-a-Lot ... and take an equity stake in what remains of Supervalu. Selling the chains would give Supervalu the cash the pay down some of its more than $6 billion in debt and allow the company to focus on selling or restructuring its nine other chains."
Cereberus aims to finalize a deal by the end of the year, according to one of Bloomberg's sources.