The Tennessean from Nashville, Tennessee • Page 41

CLASSIFIED T1 1 Hunting merchandise? A TrV Olir KQR llctlnno Local stocks 2E Livestock 2E i Pages 3-18E SATURDAY, AUGUST 1, 1998 Albertson's to swallow local Bruno's, Foo ilMax less than Kroger Co.s projected 46 share. Down .6, Bruno's was the only operator to lose local share so far this year, the report said. Gilmer said Albertson's has a reputation as a tough competitor with modern, efficient stores. "If you're looking for something in a grocery store, you can probably Turn to PAGE 2E, Column By MICHAEL DAVIS Staff Writer The Idaho-based grocery chain that plans to roll its buggies into Middle Tennessee by buying Bruno's Inc. locations Is a skillful operator, according to industry observers.

Bruno's wants to sell its IS Bruno's and FoodMax stores In Tennessee, including 11 in the Nashville market, to competitor Albertson's Inc. (or about $34.4 million plus in In addition to the sale of 14 operational Midstate stores and one location that has never opened, Bruno's Is selling four sites in the Chattanooga area. The purchase is subject to the approval of regulators and the bankruptcy court Albertson's now operates about 900 locations In the West, Midwest and Southeast "This acquisition will provide Al- mer, editor of regional grocery trade publication, The Shelby Report of Gainesville, Ga. "It's not surprising at all." As recently as early June, Bruno's officials told The Termessean they had no plans to sell their local stores. Albertson's the rumored favorite to take over the Bruno's locations refused to confirm or deny reports at the time that a deal was pending.

ventory costs. Bruno's, based In Birmingham, had filed for Chapter 11 bankruptcy reorganization six months ago. The Intention to bag operations in Tennessee ends months of speculation about the fate of the chain's Midstate locations. "The buzz in Middle Tennessee has been playing the guessing game as to who would come in and take over these stores," said Chuck Gil bertson's with an excellent opportunity to enter two new marketing areas that fit strategically with our existing operations," said Mike Reuling, the chain's executive vice president for store development Bruno's Is now the Nashville area's No. 2 grocer, according to the Shelby Report, with Just under 10 of the local market share.

That's far 1 '1 uuu o) no ji sml Ercnjinru Proffitt's hedging on expansion Deal with Dillard's may be in offing By CARRINGTON NELSON and STACEY HARTMANN Staff Whim Proffitt's the department store chain that has made no secret of wanting to buy several area Cast-ner Knott stores, could make an announcement as early as next week that it is expanding its presence in the Midstate, sources close to the companies say. The Alabama-based company has been among several competitors in advanced negotiations with Dillard's Inc. to purchase selected stores. Proffitt's officials said yesterday no deal had been reached with Arkansas-based Dillard's. Dillard's declined to comment Dillard's, which announced in June it would acquire Ohio-based Mercantile Stores, is expected to finalize the $2.9 million purchase in the next few days.

It has already announced It will swap seven of the acquired Mercantile stores in Florida and South Carolina for eight Belk stores in Virginia and one in Chattanooga as it attempts to reduce market overlap with Dillard's stores. In the Nashville area, Dillard's has overlap with five Castner Knott stores in the major malls. Later this month, Proffitt's is hosting a celebration at its Parisian store in Cool Springs, further fanning speculation that the department store chain will expand its presence here. Representatives from Estee Lauder, Tommy Hilfiger, IBM and other major suppliers will join the division heads of Proffitt's to tour the Parisian store, the only local Proffitt's holding. "It's the first time that Proffitt's Inc.

has hosted an event of this sort," company spokesman Chris Ohmer said. It is expected to draw 600 key executives, vendors and buyers. "Brad Martin chose Nashville as the site to introduce people to his home state," he said of the Proffitt's chairman and chief executive, who hails from Memphis. Proffitt's, Turn to PAGE 2E, Column 1 ROBERT JOHNSON STAFF Co-tounden of PMT Service, President Greg Daily and Chief Executive Officer Rich Roberts, have watched their profits grow. Leaping to beat trend in payments pays off big PIYIT Services stock rise (J) Since its initial public offering in 1 994, PMT Services ijutvdoseTI O.

has seen its stock rise steadily. $22,938 I $30 1VW Stock price A I i VV7 Monthly closes J- 'St By CARRINGTON NELSON Staff Writer Give Rich Roberts the right parts, and he can build quite a sum. In his spare time, for instance, the chief executive officer of PMT Services Inc. recently moved four log cabins from various sites across Tennessee to Rock Island, a vacation enclave near McMinnville, Tenn. There, he assembled the cabins into a showplace lodge that sleeps more than 20.

It's that kind of consolidation that has made his company a leader in the industry of electronic payment transaction services. In the last six years, Roberts has amassed about SO independent services organizations (ISO's) and other credit card processing companies. Yesterday, the company announced its latest acquisition Superior Bankcard Services, a Los Angeles-based ISO with a merchant portfolio of 20,000 accounts and $1 billion in annualized charge volume. The acquisition demonstrates PMT's continued aggressive growth, even as the completion of a $13 billion merger with Atlanta-based Nova Corp. approaches In September.

The Nova merger, announced in June, will create the country's fourth largest provider of merchant card processing, behind First Data National Processing Corp. and Paymentech. But Rich Roberts, 40, and his co-founder Greg Daily, 39, arent taking the money and running. Turn to PAGE 3E, Column 1 ASON 0 MAM ASONOJ MAM ASONOJ FMAMJJ ASOND MAM 15 Mi. 10 Ml.

5 Ml i I Trading volume 1 1 1 1 i i I I kuhu I lliiiillill 1 iliihllllL PMT Services Inc. delivers their annual report with a cot-orful punch the company's colleagues become super-heroes who bring shareholders a report of skyrocketing profits: a 92.6 increase in annual profits for 1997. 1998 1994 1995 1996 1997 SOURCE Bloomberg Mews LEIGH SINGLETON STAFF Postal Service can't have it both ways From life as Cat's to Turtle's and back music store returns rrru sion rejecting the Postal Service's attempt to dismiss FedEx's lawsuit The Postal Service has hastily elevated the shield of governmental privilege when accused of competitive wrongdoing," Judge Robert Krupansky wrote for the court The court took no position on whether FedEx's claims are valid. The overnight mail delivery company sued in 1996 in its hometown of Memphis, demanding a court order to stop what the company says are television commercials that unfairly portray the Postal Service's priority-mall delivery service as better than the -'Private business ways negate lawsuit shelter CINCINNATI (AP) If the Postal Service wants to act like a private business and bash com- petitors in televised ads, it cannot claim a federal agency's protection against lawsuits, a federal ap- peals court ruled yesterday. The 6th U.S.

Circuit Court of Appeals kept alive Federal Express lawsuit claiming it was damaged by Postal Service ads criticizing FedEx's express mail delivery services. A three-Judge panel of the ap- peals court unanimously upheld a lower court's March 1997 deci FedEx 2-Day service. FedEx says its service, though more expensive, offers superior package tracking and guarantees. The lawsuit also asks for unspecified monetary damages. In 1970, Congress dissolved the old U.S.

Post Office Department and replaced it with the current-day Postal Service, giving It flexibility to operate more like a private business while remaining a federal agency. In 1995, the Postal Service began its national TV ad campaign to try to win overnight-delivery business from FedEx and other competitors. "We felt over the years the climate and conditions weren't right to re-enter the market" Carlock said yesterday. "Now they are." He pointed to the struggles nationally for the Viacom-owned Blockbuster Music chain as well as Media Play, a multimedia entertainment chain that opened numerous stores en masse In various markets, then had to shut down some of those stores. Cat's is concentrating on installing stores in strip malls in Nash- I Turn to PAGE 2E, Column 5 By TOM ROLAND Staff Writer Cat's Is purring in Nashville again.

Cat's Compact Discs and Cassettes, once the city's dominant music chain, has re-entered the market and hopes to regain its dominance within the next two years. Music City Record Distributors, Cat's' parent company, sold the chain's 10 Music City stores including a flagship site on West End Avenue to Turtle's Records 10 years ago. Turtle's subsequently was bought by Blockbuster Music. But Music City Record Distribu tors, parent company of Cat's, maintained its rights to the name and continued to own other Cat's stores in Southeastern markets spread from South Carolina to Memphis. Two new Cat's sites in Smyrna and Franklin are celebrating their official grand opening on Friday.

And the company expects to open another outlet in Hermitage by the end of the year. Cat's owner Bruce Carlock anticipates launching seven or eight Nashvillfrarea stores by the end of summer 2000. TTTTl Coming tomorrow BaiSey joins Health 123 as chief financial officer Dow takes a fall as panic impedes stocks recovery A late burst of panicky selling cut short another rebound today, nearly slicing 200 more Business Editor Lisa Green i 259-8096 Assistant Business Editor: Bill Choyke 664-2156 Personal Finance Editor Candy McCampbell 259-8076 Fax: 259-8093 E-mail tips: For Information, call 9 p.m. Monday-Friday. IRS grants tax-exempt status despite challenge The Internal Revenue Service has approved tax-exempt status for Jackson Hospital In Jackson, and Volunteer Hospital in Martin, despite a challenge from a Washington, D.C.-based watchdog group.

Volunteer Trustees of Not-For-Prolit Hospitals claimed the hospitals, which Nashville-based ColumbiaHCA Healthcare Corp. is leasing to Memphis-based nonprofit Methodist Healthcare, retained ties to ColumbiaHCA that made tax-exempt status inappropriate. Music City Future 50 Who's among the 50 fastest-growing private businesses in Middle Tennessee? Find out tomorrow, when the winners of the Music City Future 50 are announced. The winning companies all showed at least 50 revenue growth in the past three years. Future 50 winners will be featured in a special section to be published by The Tennessean in mid-September, and honored at an awards banquet.

In tomorrow's Tennessean Michael D. Bailey has been named chief financial officer for Health 123and Vanderbilt Health Plans. His responsibilities will include finance, acquisitions, development for the company, banking, shareholder relations, information systems, and new capital initiation and expansion. He I Dww Imfettrii 1 points off the Dow and extending the stock market's two-week slump. Broad-market indicators also gave back Thursday's gains, making it the second time this week that a would-be recovery unrav LmSiMUlllMl I BAILEY eled after one session.

The Tennessee Bloomberg Index closed at 210.27, down 2.89. Story and tables on 2E. was executive vice president and chief financial officer for MedSolutions, Inc. I.