SUPERVALU Fires CEO, Names Sales to Take Over

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SUPERVALU Fires CEO, Names Sales to Take Over

SUPERVALU Fires CEO, Names Sales to Take Over

In a press release on Monday, SUPERVALU INC. (NYSE:SVU) announced that its chairman of the board Wayne C. Sales had been named as the company’s president and chief executive officer; he replaces Craig R. Herkert who was forced out by the company after three years. Sales will continue his chairman responsibilities.

The new CEO has been a SUPERVALU INC. (NYSE:SVU) director since 2006 and the non-executive chairman of the Board since 2010. Prior to joining SUPERVALU’s board, Sales was the former vice chairman of Canadian Tire Corporation Limited (TSE:CTC) (TSE:CTC.A) and its president and chief executive officer from 2000 until 2006.

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The ousting of Heckert comes after the company has endured difficult times, especially in this month. We reported back on July 16that it had announced a terrible first quarter earnings report followed by a suspension of its dividend. It also said it would either sell all of part of SUPERVALU and hired Goldman Sachs Group, Inc. (NYSE:GS) and Greenhill & Co., Inc. (NYSE:GHL) to advise.

On July 16, the Wall Street Journal reported that Supervalu had opened its books up to the private-equity firms Cerberus Capital Management, Kohlberg Kravis Roberts & Co. and TPG Capital; C&S Wholesale Grocers Inc. was also expected to take a peek.

By July 13, the company had hit a 32-year low in its stock price and through last Friday, it had dropped further, losing 75 percent of its value.

With the change in leadership what can investors expect?

Sales said in Monday’s release, “In my new role, I will work closely with our leadership team to improve our sales and earnings trajectory and generate long-term shareholder value, focusing relentlessly on identifying factors that will drive meaningful improvements in our strategy execution an