SCHNUCKS AGRESS TO SELL 23 STORES IN ST. LOUIS TO FAMILY COMPANY

Schnuck Markets Inc. has agreed to sell 23 stores in the St. Louis area to Family Company of America, which will operate them under the National Markets name.

Included in the sale will be 17 former National chain stores and six Schnucks markets currently being operated by Schnucks, Craig D. Schnuck, Schnucks chairman and chief executive officer, said in a prepared statement Tuesday.

Schnucks will also license the National name to Family Company of America, a new St. Louis company.

"Our sale of 23 stores and our licensing of the National name to a single buyer means we're keeping our promise to St. Louis area consumers to maintain supermarket competition," said Schnuck.

Schnucks bought the National Supermarket chain -- previously owned by Toronto-based Loblaw Companies Limited of Canada, Schnucks' biggest competitor -- last year. Schnucks is required by the Federal Trade Commission to sell 24 of the stores to satisfy antitrust concerns.

Ronald M. Jezlerski is president and chief operating officer of the new Family Group of America. He said the new National Markets will be competitively-priced, full-service markets.

Jezierski said that in the future Family will offer all the employees currently working in the 23 stores an opportunity to apply for positions.

James R. Gibson of Belleville,Ill., is majority owner, chairman and chief executive officer of Family of America.

The deal to sell to Family must be approved by the FTC. Missouri and Illinois attorneys generals also will review it.

Schnucks said it fielded inquiries from more than 45 interested buyers. The sale includes former National and Schnucks stores in St. Louis, St. Louis County, St. Charles County, Jefferson County and Illinois.

Schnucks officials say the company is still negotiating with a prospective buyer for the 24th store.

Terms of the sale were not disclosed.

About 500 former National employees who have worked for Schnucks will be hired by Family Company or given full severance benefits. The deal also requires that Family Company recognize the unions that represent the workers.

Employees working at the six Schnucks stores being sold will be offered comparable jobs at other Schnucks locations, the company said.

The sale to Family Company will leave Schnucks with 70 stores in the St. Louis area and a total of 90 in Missouri, Illinois, Indiana and Kansas. National and Shop 'n Save will be tied for second-largest chains behind Schnucks with 23 stores each in the St. Louis area.