SCHNUCKS WILL KEEP DEL-FARM STORE HERE

The Del-Farm store on South Sprigg would remain open as a second Schnucks store in a deal reached between Schnucks and the Federal Trade Commission.

A Schnucks spokesman said Wednesday no timetable was set for Del-Farm to become a Schnucks store, but it probably would be sometime after the 60-day period the FTC set before the tentative agreement becomes permanent.

The Schnucks store at 19 S. Kingshighway also would stay open.

According to the agreement, Schnucks will sell 24 stores. Those stores would remain open until sold to other supermarket operators, improving employment opportunities for National workers. The plan calls for Schnucks to sell the stores within 12 months of completing the purchase of 57 National stores in the St. Louis Division.

The FTC must still approve the agreement after a 60-day period for public comment.

"The required divestitures are greater than we had anticipated," an owner, Craig D. Schnucks, said Wednesday. "Despite the loss of almost half the stores operated by National in metropolitan St. Louis, we'll still gain efficiencies by operating as a larger organization."

Missouri Attorney General Jay Nixon and the FTC had questioned t4he buyout, saying it was likely to lessen competition substantially in violation of federal antitrust laws. Without the agreements, the FTC said, the lack of competition might result in higher prices for consumers.

Nixon said he was concerned about "market concentration" if Schnucks was allowed to add all of National's 50 St. Louis-area stores to its own 50 stores here. Schnucks then would have more than half the chain supermarkets in the area.

Schnucks would have 76 stores in the St. Louis area if the transaction is completed.

Schnucks will meet with leaders of the unions with which it has contracts to discuss terms and conditions for National employees hired by Schnucks.

Schnucks employees are currently being considered for positions in the new stores as required by seniority clauses in Schnucks union contracts.

All Schnucks employees in stores that are sold would be transferred to other Schnucks stores.

A Schnucks spokesman said National employees will be interviewed for Schnucks jobs, starting in two to three weeks.

Schnucks expects to hire more than half of the National employees despite the large number of divestitures.

In selling the stores, Schnucks would give preferential consideration to companies that would hire existing National employees and maintain the terms and conditions of the union contracts in place.

"We want to do everything we can to ensure National workers find jobs," Schnuck said.

Schnucks announced plans to acquire most of the net operating assets of National supermarkets from Toronto-based Loblaw Companies Limited of Canada in mid-January. The purchase includes 57 National Stores, 50 of which area in metropolitan St. Louis. Other stores in the purchase include two at Springfield, Ill., one each at Litchfield and Carbondale, Ill., and once each in Rolla, Hannibal and Cape Girardeau.

Four National stores to be sold are in St. Louis and eight are in St. Louis County. Others are in St. Charles County, Jefferson County and three in Illinois, at Collinsville, Cahokia and Fairview Heights.

Four Schnucks stores would be sold in St. Louis County, and one each at St. Charles, Mo., and Wood River, Ill.

Grocer merger

Schnucks, headquartered in St. Louis, reached agreement with the FTC and Missouri and Illinois attorneys general Wednesday to acquire most of the net operating assets of National Super Markets in the St. Louis Division.

The agreement requires Schnucks to sell 24 stores -- 18 National stores and six Schnucks stores -- to other food retailers.

The divestiture would result in a net gain of 26 metropolitan stores to the 50 stores Schnucks operates in the metropolitan St. Louis area.