Blue Square to close 16 stores, fire hundreds in 2004

Blue Square plans to discontinue the Super Center City, Super Co-Op, and King Center brands, but will continue promoting Mega.

Gal Nissim ( The Globes)  

Sources inform “Globes” that Blue Square Israel (NYSE: BSI; TASE:BSI) controlled by Alon Israel Fuel CEO David Weissman, will probably close 16 supermarkets and fire hundreds of employees in 2004. Blue Square plans to discontinue the following brands: Super Center City, Super Co-Op, and King Center. The Super Co-Op stores at the Arim Mall in Kfar Saba and Park Mall in Ra'anana will probably be closed in February 2004.

Four Super Center City supermarkets at the Ramle Central Bus Station, Kiryat Hayovel in Jerusalem, the Hadera Mall, and at Matan are slated for closure. An internal document obtained by "Globes" states that five supermarkets in Kfar Saba, Ra'anana, Ramle, Matan and Jerusalem will be closed.

Blue Square's 2004 budget does not include five supermarkets that might be slated for closure in Ramat Hasharon, Givatayim, Ashkelon, Hadera, and Nes Tziona. Rental contracts for six other supermarkets terminate in 2004, and may not be renewed.

The supermarket closures are expected to lead to hundreds of lay-offs.

A Blue Square spokesperson said in response, "We expect to open six new branches during 2004, mostly of the Mega brand. Nothing has been decided about closing branches. That does not mean that they won't be closed, but the number mentioned are merely speculations. 200 jobs will be cut from Blue Square's headquarters and branches under the company's streamlining measures."