German conglomerate Tengelmann could look to sell its stake in US retailer A&P in the future, the company has told just-food, although there are no immediate plans to quit the business.
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Tengelmann owns a 38.6% share of A&P, a US chain that focuses on the north-east of the country.
Talk of a potential sale surfaced after A&P chairman Christian Haub, a member of the family behind Tengelmann, gave an interview to a German magazine.
A spokesperson for Tengelmann, however, said the business had no plans to sell up now, although she conceded a disposal could be a consideration in the longer term.
“It is not an option now but may be in the far future,” she told just-food today (24 September).
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By GlobalDataIn July, Tengelmann teamed up with investment vehicle Yucaipa to shore up the balance sheet of A&P.
Tengelmann agreed to spend US$60m on preferred stock, while Yucaipa, the fund led by investor Ron Burkle, plans to invest some US$115m. Tengelmann remains the largest shareholder in A&P but Yucaipa, which has two directors on the A&P board, holds 27.6% of the business.
News of the investment came as A&P announced its fiscal first-quarter results, which included a 3.3% fall in comparable-store sales. Turnover dipped from $2.9bn a year ago to $2.8bn for the three months to 20 June.
Adjusted EBITDA reached $80m, compared to $96m a year earlier. Adjusted income from operations stood at $2.3m against $16.2m a year ago.
