Marsh Supermarkets checking out sale

[hippiechick]

Did they stop a second to consider that maybe the reason they're losing money is because their stuff is so goddamn overpriced that in this lovely Bush economy, nobody can afford to shop there ? :freak:

http://www.indystar.com/apps/pbcs.dll/article?AID=/20051129/BUSINESS/511290490

By Norm Heikens
[e-mail]
Marsh Supermarkets has hired a Wall Street investment firm to explore a sale of the Indianapolis-based grocery chain, the company announced this morning.

Merrill Lynch & Co. has been retained to “explore strategic alternatives for the enhancement of shareholder value, including a possible sale of the company,” Marsh said in a press release.

The announcement came as Marsh disclosed a second-quarter loss of $3.4 million or 43 cents a share. That compares to a year-ago profit of $1.3 million, or 16 cents a share.

The company said it has been working hard to reduce costs during a time of increasing competition — much of it coming from discounters such as Wal-Mart, Meijer’s and Target. But it decided it was time to explore other alternatives.

more at link ...

[izzybeans]

1. They should switch to whole foods keep their prices the same and

actually provide a real alternative.

[Indy_Dem_Defender]

2. Maybe They should try some of my ideas

1) Quit moaning about Walmart taking a cut out of your business, Marsh has been doing the same to local supermarkets, Gas Stations, Florist & Catering companies for as far back as I can remember.

2) Fire your kids Don, they don't know how the hell to run a business, this happens time and time again call it the "W" effect, parents hand companies over to their Aristobrat kids that have no clue about the reality of life, as the old saying goes "Born On Third Think's He Hit Triple". Your kids have never had to work for anything in their life so how could they relate and understand any of your employees who have had to do just that all their lives. They've lived the life of luxury and haven't got a clue that making these crazy concept stores with new versions every 2 years aren't going to make you a penny. Most of your customers really don't care if your selling speciality foods or whatever because they haven't lived the lifestyle your children are a custom to. That's why you have to pull those products out of a good chunk of your stores 6 months after the grand opening.

I'm just blowing off steam here, I've heard from a family member of mine that works for Marsh that the already low moral of the employees is now sunk to an all time low.

By the way are the Marsh Family going to send out those stupid X-Mas cards with them acting out scenes this year. I now those would cost a lot of money to make and they do send those to each employee, that's a lot of wasted money!

[hippiechick]

3. Welcome to DU !

Glad you found our little corner !

Great post, btw ! :hi:

[SpeedwayDemocrat]

4. I briefly felt pity for them...

until I saw the big money bonuses they gave their new CFO and other higher-ups featured in this morning's Indy Star. Stupid move on their part. Nice way to turn public sentiment against them by rewarding the big cheeses for losing quarters.
Now the only pity I feel is for the poor store employees, getting this news just before Christmas.

[hippiechick]

5. Ouch ! Sunday Star follow-up article ...

http://www.indystar.com/apps/pbcs.dll/article?AID=/20051204/COLUMNISTS21/512040390

Family style looks out of fashion with Wall Street

For some people, going to work at Marsh Supermarkets is like going to a family reunion, but instead of potluck it's a catered affair. Thirteen members of two insider families hold executive positions at the company, and they earned $4.1 million last year.

The large family presence among the executive ranks leads analysts and others to conclude that Marsh still operates like a private, family-owned business even though it has been a public company for 52 years. Marsh's management has become a focal point, given the company's years of lackluster financial performance and Tuesday's announcement that it may sell. "The industry has tremendous pressure on it," said Dan Dalton, head of the Institute for Corporate Governance at Indiana University. "It does not appear that Marsh has reacted well to it."

Marsh's financial performance lags industry leaders. Its stock has fallen more than 30 percent in the last five years, while the Standard & Poor's 500 Consumer Staples Index is up 5 percent. It seems the market lacks confidence in management's ability to boost performance.

The question is whether the concentration of family members allows for proper checks and balances. It's hard enough to challenge a boss who is wrong, let alone a father or uncle. On Tuesday Chairman Don Marsh wouldn't let company spokeswoman Jodi Marsh, his daughter-in-law, give TV interviews.

more at link ...

[izzybeans]

6. opps! self-delete