OCR Text |
Show Chain Stores Consolidate Confirmation of ruiurs, current foi some time, involving the consolidation consolida-tion of Pacific Coast and Pacific North west chain store interests, was had today with the joint announcement by M. B. Skaggs, president of Skagga United Stores Company, L. L. Skaggs president of .Skaggs Cash Stores Com pany, and W. li. H. Weldon, president presi-dent of the Safeway Stores, Inc., of the successful completion of negotiations negotia-tions and the merging of the three big chains into one system, effective as of July 1st, 1926. Net assets of the concerns involved in the transaction are given as in excess ex-cess of five million dollars and the deal includes 781 retail grocery stores 122 meat markets, 6 bakeries and other oth-er activities of a similar nature, operating oper-ating in ten Western States. Estimated Estima-ted total annual sales of the units involved are said o approximate $60,-000,000 $60,-000,000 and the officials of the concern con-cern state that it is the intention to rapidly extend the present scope and volume of the business. The merger is said to make this the largest grocery gro-cery concern operating west of the Mississippi River. In making the announcement of the consolidation, heads of the concerns involved pointed out that the three chains have beep and are now operating opera-ting in non-competing territory. The two Skajrffs chains are located in and around San Francisco, in the . San Joaquin and Sacramento Valleys in California and in most of the larger cities and towns of the other nine Northwestern States, including Oregon, Ore-gon, Washington, Idaho, Montana, Utah, Nevada, Wyoming, Colorado and extending, as far east as Nebraska. The Safeway Stores operate entirely in Southern California. The reason for the merger as given by the head of the different companies, compan-ies, is to further a far reaching effort ef-fort toward effecting greater economies econo-mies in food distribution by assuring to one organization sufficient volume to warrant such consolidation of manufacture man-ufacture and warehousing as might otherwise be unattainable. Officials of the concern pointed out that, simply sim-ply as a matter of good business, the benefits of all such economies will be passed on to the consumer as they are realized. According to the announcement no change in personnel of the concerns involved is contemplated. M. B. Skaggs is president of the consolidated companies com-panies and L. L. Skaggs and Edward Dale will continue to act as directing heads of merchandising operations, while W. R. H. Weldon will assist in the financing and the formulating of policies. Edward M. Selby, of Los Angeles and W. R. Griswold of Oakland Oak-land are the attorneys for the new concern. |