The Tennessean from Nashville, Tennessee on August 25, 1998 · Page 37
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The Tennessean from Nashville, Tennessee · Page 37

Nashville, Tennessee
Issue Date:
Tuesday, August 25, 1998
Page 37
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1 f a i - Hi l;i IF CLASSIFIED BUSINESS E Looking for wheels? Try our 1,319 auto ads Pages 6-20E Local stocks 4E Mutual funds 5E TUESDAY, AUGUST 25, 1998 ybertson's fooi stores oi r stir things; up new viiam muvmg in I tn Rninn'Q FnnHlvfay citpc By STACEY HARTMANN Wr iter ti,0 Loyal shoppers of Bruno's and FoodMax will notice a difference ,today: They're shopping at Albert- A sons. Llt-The Boise, Idaho-based company yesterday completed its purchase of 15 stores in Middle Tennessee and the Chattanooga area. The company is rapidly converting the properties sold by the troubled Bruno's cftain of Birmingham, Ala. to the Albertson's Inc. name and ways. jj-jun Nasnvuies turf, tne cnange j,i i cijji vacuus a Hireling yji juaai auu oiWest grocery-industry powerhouses. cbvThe Kroger Co., the dominant chain in Nashville with a projected 46 share, is a market leader in the eastern United States. It is based in Cincinnati. Albertson's, better known in the West and Midwest, is stepping into " &t6 No. 2 slot in Nashville with just urider 10 of the local market --share, according to The Shelby Re- More about it History: Albertson's was founded by Joe Albertson, who . in 1939 opened a small grocery store in Boise, Idaho. In that 'first store, Albertson offered 'some unusual services for the time, including a made-from-- scratch bakery, automatic " doughnut machine and magazine rack. Big double-dipped tee cream cones called "Big Joe's" went for a nickel. Headquarters: Boise, Idaho. Operations: Albertson's now ""operates more than 900 stores in 23 states in the West, Mid-1 West and Southeast. Earlier this month, Albertson's announced it will acquire American Stores Co. The combined company, with more than 2,470 stores In 37 states, will be the largest food and drug chain in the nation. In Tennessee: Since January, Albertson's has managed to enter most of Tennessee's major markets, including Nashville, Memphis and Chattanooga. , Net sales: $14.6 billion for fHhe fiscal year ended January H998. SB- Earnings: $516 million for the fiscal year ended January 1998. Employees: 94,00b in fiscal 1998. mm Minorities set fewer loans U I 1 ' Banks must try 1 1 "j By KEITH SNIDER if t,ft U -,,or Staff Writer ana Tennesse id Tenrtessean News Services Lenders need to do more to get ijninority borrowers into homes, ac-cqrding to some Nashville bankers who say government mortgage programs wont work without an energetic commitment by everyone from loan officers to bank presidents. New federal statistics show loans to minorities slipping and, more froubling, show that minority bor-owers are turned down at a higher Business Editor I Lisa Green i- 259-8096 Assistant Business Editor: Bill Choyke 664-2156 Personal Finance Editor ! Candy McCampbell i 259-8076 : Fax: 259-8093 ,'. . E-mallttps: For information, call 9 a.m.-5 p.m. Monday-Friday. port, a regional grocery trade publication out of Gainesville, Ga. What customers will see during the next month: Outside signs will be replaced with banners until they can be changed permanently. Private-label Albertson's products are being stocked on shelves alongside well-known national brands. New checkout stands are being installed. "The facilities themselves, overall, look pretty good," said Shane .Sampson, Albertson's division manager. "Any improvements we can do, we'd like to do." Bruno's, considered bigger and more diverse in product offerings, and FoodMax, considered more traditional, are both changing to the Albertson's format. But each store will try to carry forward the characteristics of its predecessor, Sampson said. "We're going to appeal to what the customers in that area want," Sampson said. "If that customer's need is sushi, that's what we're going to do." For Middle Tennesseans, Albertson's is an unexplored grocery landscape. How it varies from other area grocers will be determined by each shopper. - "Kroger tends to be more promotional, using a lot of price promotions, while Albertson's tends to be more everyday low prices," said Charles Cerankosky, an analyst with McDonald & Co. Securities Inc. in Cleveland. Both companies tend to be good operators of combination food and drug stores, Cerankosky said. But Kroger is farther along in tailoring stores to meet the needs of their immediate areas. "Albertson's is moving in that direction," he said. About 700 full-time and 475 part-time employees in Middle Tennessee are affected by the change. "All employees were taken back, provided they passed the drug test," said Casey See, Albertson's district manager. "I think only one or two didnt make it." Albertson's has determined that some stores were understaffed and is now trying to hire more people, Sampson said. Some Albertson's employees were members of Local 1995 of the United Food & Commercial Workers International Union. "We're in renegotiations with the union as we speak," Sampson said. to look at big picture, lender says rate than whites even when their incomes are the same. It's no surprise to Frank Reed, who works with minority borrowers as vice president of residential lending for First American Bank. While some applicants arent prepared for the kind of scrutiny that banks put borrowers through, banks also are quicker to deny marginal loans than they are to push for more information, Reed said. "I put a lot of people in houses because I was committed to working the deal," said Reed, a former Interest rates on short-term Treasury securities were mixed in yesterday's auction. The Treasury Department sold $5.75 billion in three-month bills at an average discount rate of 4.92, up from 4.91 last week. An additional $7.25 billion was sold in six-month bills at an average rate of 4.94, down from 4.95. The three-month rate was the highest since Aug. 10, when the bills sold for 4.94. The six-month rate was the lowest since Jan. 12, when the average was 4.91. In a separate report, the Federal Reserve said yesterday that the average yield for one-year Treasury bills rose to 5.24 last week from 5.23 the previous week. jr X O - .'Si SIB jju&hM I t , T i 1 is. Wtfw Albertson's store director Mike Peckis area stores began yesterday. "We hope to come to an agreement in a short period of time." Albertson's has teams from existing stores serving as buddies for employees of the new stores. The sale to Albertson's came about in late July when Bruno's announced it would sell the 15 properties for about $34.4 million plus inventory costs. Months earlier, Bruno's had filed for Chapter 11 bankruptcy reorganization. Albertson's started its move into Tennessee in January, when it decided to buy 10 Memphis stores, owned by Bruno's and run under the Seessel's name. Albertson's may open more stores in Middle Tennessee. "We'd like to grow this market," Sampson said, "but we do not have any firm sites today." Staff Writer Amy Marchese contributed to this report. loan officer. Various programs are in place locally for minority borrowers, including a Nashville Housing Fund initiative that helps families raise down payments. Local banks also offer 100 mortgages with average closing costs of just $500-$600 under the federal Community Reinvestment Act According to new federal data, conventional home mortgages those not backed by government t Turn to PAGE 2E, Column 1 Coming tomorrow Insider Trading tells all Want to know what the insiders at your local companies are doing with their stock? Insider Trading is a weekly report of stock trades as reported to the Securities and Exchange Commission and the New York and American stock exchanges. The report involves officers, directors and owners of 10 or more of a publicly held company. In tomorrow's Tennessean takes down a Bruno's sign at the Albertson's replaces Bruno's and FoodMax stores Albertson's Inc. yesterday completed its purchase of 15 FoodMax and Bruno's stores. Albertson's has also acquired four stores in the Chattanooga area that are not shown on this map. 'Never opened 6'fllii ti'fljHiMWfinni iiwr lWwi aSntwoodSJ ! Sirrom shares keep Ru rADDINr.TAN MTI COM i on -i i mnn : By CARRINGTON NELSON Staff Writer Six weeks after Sirrom Capital stock nosedived on news of a $6 million write-off, the share price continues to plummet. Shares fell $1 yesterday to $7.75, their lowest close in 1998. Henry Coffey, an analyst with J.C. Bradford & Co. in Nashville, lowered his rating on Sirrom from "strong buy" to "buy." Among analysts who cover the stock, six carry "buy" ratings while four maintain a "hold". Coffey also lowered earnings estimates for 1998 from $1.37 to First American appoints Ware a senior VP, manager WARE base p3y and executive compensation programs. niiiimi iWi4)ii.iiiiii'.t "I",; SHELLEY MAYS Cool Springs location. Changes at the DREW WHITE STAFF $1.30 per share and 1999 esti mates from $1.72 to $1.60. Sirrom shares first fell precipitously in July on news that loans to Saraventures and Precision Panel would be written off. The company has since seen shares drop from the $25 range. A sluggish market for initial public offerings could also stem Sirrom's future growth, said Coffey. IPO completions have dropped from 63 in June to 52 in July and only 19 to date in August, according to Bloomberg News. While Sirrom currently has four com nraF ... j$$ dallatin H FoodMax "gsuMNER E3 Bruno's gvllltjQ. davidson jXf h CNashvlMeM' v k yMurfreesboro J maury r J jL- pJ RUTHERFORD Columbia in J v1 4 IVyjp J 0 Miles 10 ft am Judy F. Ware has been named senior vice president and compensation manager for First American Corp. Previously vice president and base pay programs manager, Ware will be responsible for the design and aHminktratinn nf all Dm I Ex-Shoney's execs plan new eatery By LISA BENAVIDES Staff Writer Two former Shoney's executives are bringing a Southwestern-themed restaurant chain to Gallatin in October, opening the first area Buffalo's Cafe. Ray Danner, retired founder of Shoney's, and Kevin Henderson, a former Shoney's executive, have become franchisees with Atlanta-based Buffalo's Franchise Concepts Inc. The cafe at 512 W. Main St. will feature a rustic, Southwestern decor, with antiques and artifacts, h i g h - b a c k booths and a covered patio. Menu items include Buffalo- style chicken wings, slow- DANNER roasted chicken, wraps, burgers and sandwiches. Buffalo's seeks to capitalize on serving the niche between quick service and tablecloth concept restaurants. Its customers tend to be families and singles ages 20-54. The average meal check is $7.80 per person. Nashville-based Danner and Henderson, who own the Danner-Henderson Group LLC, have agreed to develop an undisclosed number of restaurants in the 10-county Middle Tennessee area. "We're excited to introduce Buffalo's Cafe to Nashville," Henderson said. "The food is outstanding. The menu offers a variety of items at very reasonable prices, and the company is known for outstanding customer service." The 13-year-old Buffalo's has 40 restaurants in the Southeast, including one in Memphis. The company also has development agreements in Indonesia and Egypt, and plans to expand internationally. The Gallatin restaurant will be the largest in the Buffalo's system, with 6,500 square feet, and seating for 226. It will offer liquor by the drink, which has been allowed in Gallatin since 1996. "Mr. banner and Mr. Henderson's operational insights, as well as their extensive product and marketing experience, will greatly benefit not only their Nashville-area restaurants but the entire Buffalo's system as well," said Ray Cabana, Buffalo's Franchise Concepts president and chief executive. Danner is the former president, CEO and chairman of Shoney's Inc., and was with the company almost 40 years until his retirement in 1988. He currently owns two Crockett's steakhouses, in Manchester and Tullahoma, Tenn. Henderson was with Shoney's for 17 years, starting the Barbwire's concept for that company. , He serves as a senior partner of The Danner-Henderson Group. The estimated startup costs for a Buffalo's franchise average about $450,000, excluding lease andor property. on Ming nonine in tVia hnniur u;aitinr tn panies in the hopper waiting to be taken public with potential gains of $20 million, the current market down about 8 since July has investors worrying that the returns on IPOs won't be as high as in the past. Furthermore, investors fear Sirrom is likely to reduce its dividend payouts, Coffey said. If the company's loan losses rise from 10 the current fraction of Sirrom's portfolio on its watch list to 20, predicted Coffey, dividends could be reduced from an estimated $1.08 to 80 cents a year. Market tries to rebound, but investors take profits Blue-chip stocks scored modest gains yesterday, but the broad market faltered after an mr early bid at extending the rebound from Fnday s steep drop. Broader stock indicators were mixed yesterday as investors, shaken by Friday's gyrations, used the market's opening bounce to pull some mon ey off the table. The Bloomberg Tennessee Index was 191.21, down .33. Story and ta-. bles on 4-6E. II i

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