GRAND RAPIDS, Mich.— Grocery store operator and distributor Spartan Stores Inc. said it is closing five Pharm retail stores and one convenience store by the end of the month.
Spartan Stores said the convenience store, which is located in Michigan, was acquired from privately held retail grocery operator G&R Felpausch Co. in a deal first announced in March. The five Pharm stores are located in Ohio.
The decision to close the stores was based on a comprehensive evaluation of the stores’ performance trends, long-term growth prospects, on-going capital requirements and lease expiration dates.
The Company expects to record a pretax gain of approximately $0.8 million from the sale of related assets in its fiscal 2008 second quarter. The net gain on the transaction will be recorded as discontinued operations on the Company’s financial statements.
The Pharm retail stores are located in Napoleon, Findlay, Bowling Green, Lima, and Port Clinton, Ohio. The ExpressMart convenience store is located in Mason, Michigan. Following the closing of these retail stores, Spartan Stores retail store base will consist of 88 retail supermarkets and 14 Pharm stores.