The Pharm for sale.

Did anyone else see this the other night on Fox 36? It looks like the Pharm may be sold off or closed. I know quite a few people who work for them in various capacities and I’m fearful for them in these economic times.

Has any company ever done a worse job running a new acquisition then Spartan? They closed/sold Foodtown in almost no time at all after taking over and they may have finally finished off a once great Toledo company (Maumee technically).

Has anyone else heard anything about this?

New documents shown to FOX Toledo News reveal that Spartan Stores, the parent company of The Pharm, have put the drug store chain up for sale.

--link to story--

Your rating: None Average: 5 (2 votes)

Where am I going to get my 88 cent pop? Let's hope they reconsider.

Looks like its doomed. You're right, Spartan sucks.

&

the state economy continues its downward spiral.

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BRING THE TROOPS HOME-NOW!

_________________
"They keep talking about drafting a constitution for Iraq.Why don't we give them ours? It was written by a lot of really smart guys, and we're not using it any more".

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'I used to have compassion, but they taxed it and legislated it out of existence.'

i wonder if this has less to do with the economy, and more to do with the fact that there is a drug store and grocery store on every other block?

It's the economy, ...doopid.

It's mostly missmanagement. They have no game plan at all. The economy tanking can't be helping though.

I little capital and a good business plan and the Pharm should be a gold mine.

Places like Rite Aid and Walgreens can keep prices on non-pharma items at or below cost because the profit from prescription drugs is absurdly high. Ever notice how much pricy real estate they can afford? Ever notice that the shelves are not really fully stocked? Especially true for Rite Aid. Pay attention to the "w i d e" aisles. If you are really serious about competing in that market then every square foot is utilized. Those non drug items are not a profit center. They are there mainly to attract prescription drug customers. The Pharm doesn't have the huge chain clout to negotiate with pharmaceutical manufacturers and insurance company drug management companys, like MerckMedco and others. That's where the real money is.
Then add the outfits that do compete in that arena, "whatvever fell off the truck this week"- otherwise known as Sam's Club, or WalMart, Target, Costco and K-Mart. Lots of competition for the same dollar. (BTW, if you are a real careful comparison shopper you have learned that for "health and beauty" items K-Mart is consistently priced lower. And , no, I don't work there, no family works there and I don't own stock. I just like to pay $1.00 less for my favorite shampoo. ) The Pharm doesn't stand a chance in the current market model.

I've noticed that KMart is actually coming in with lower prices and better choices on a lot of things. I've found some really cute clothing items there for myself and for my son.
Boys are hard to buy for. Kids clothing aisles are usually something like 1 rack of boy stuff for every 10 of girl clothes and when I went looking for some PJs for my boy Kmart has been the best place for em.

I've found some nice table linens at K-Mart (from the Martha Stewart line).

As for the Pharm, I've noticed that they seem dirty now or at least dirtier than in the past. Their closing will leave some pretty big holes in Maumee. I hope that a sale can be negotiated somehow.

The golden gate Pharm has gotten dirtier and dirtier and they never replaced Food Town.

Maumee has some holes already that are filled but open back up again consistently. One example is the Chi-Chi's/Fat Freddy's/Jed's In front of the Cornerstone Church. Also there's the Acura dealership/mulitple microbreweries/Sidelines grill on the corner of Dussel and Holland-Perrysburg.

To me those are worse because they're in marketable areas but for many reasons they can't stay filled.

MikeyA

MikeyA

It is a chain that in its day was booming and a threat to most competitors which i am talking about seaway foodtown along with the pharms. It is a shame that they were all sold to such a company as spartan stores look what they have done to the city of maumee with closing the distrubution warehouse. Wally Iott is rolling in his grave as i have kept and read his obituary claiming that in the day when he come back from the war his store left to be ran by his wife was the only one left open the others failed. Wally Iott was a good man both personal and professional. This is ashamed that so many families are affected. SHAME ON SPARTAN

http://findarticles.com/p/articles/mi_m0EIN/is_2000_August_16/ai_64329130

Spartan Stores' Board of Directors consists of:
-- Richard B. Iott (age 48) Mr. Iott has served as Chief
executive Officer and President of Seaway Food Town since 1996 and as a director of Seaway since 1987.
-- Joel A. Levine (age 61) Mr. Levine has served as a director ofSeaway Food Town since 1995. Since 1992, he has been OfCounsel to the Toledo, Ohio, law firm of Spengler Nathanson PLL.

Mr. Iott and Mr. Levine were appointed to Spartan Stores' Board in conjunction with the merger agreement between Spartan Stores and Seaway Food Town. The other five directors were elected by Spartan Stores' shareholders on July 18th at the annual meeting of shareholders, taking office effective August 1, 2000.

If man has no tea in him, he is incapable of understanding truth. ~Japanese Proverb

Yes he is the one to blame on the sell out. There was a vice president Wallrod at the time of the sell out that worked for food town that wanted to take over management but Richard Iott WANTED HIS MONEY NOW it is a shame that Wally didnt rub off on him RIP wally

You poorly misinformed "man". And it's not even your total lack of understanding on the selling of Food Town and Wally and Rich's business and personal relationship, but please tell my why it's significant that he was adopted? Such hostility! I pity you! Please, for your loved ones sake, take an anger management course! BTW--Wally didn't want "Wallrod" to run the show--actually Wally fired him. Not only that, Wally DID NOT want Rich to take over; and trust me it wasn't for lack of Rich's competance. As always, Wally saw the writing on the wall concerning small grocery chains without volume (clout) to buy merchandise in huge volumes (huge savings) and then pass on the savings to his beloved customers--which Wally loved to do. He saw that it would be impossible to do that. Silver spoon? You have no idea regarding Rich working at FT --- starting when he was 13yo, cleaning type (which I'm sure you've never done), working 12 hour night shifts stocking, bag boy......etc, etc. You sad, sad grossly misinformed "man". I truly pity you.

We are all born ignorant, but one must work hard to remain stupid.-Ben Franklin

i am sure i dont have all of the facts. but when you read back to the information available to most. it seems that wally was able to keep the food town chain open during rough times and was successful through those times. It is not significant that Rich was adopted i apologize for that. I have freinds that worked for Food Town for more than 20 years and in the end got nothing. I also did hard physical work at a young age at least if you want to call splitting wood with a sledge and a wedge to split the logs and also cut grass for neighbors and help at home with chores. it is so sad to see in the end what Spartan has done to those chains and the rumors that Krogers has possibly bought the leases on 13 of the food town stores to keep competition out? for instance i have a freind that would pay twice for milk than to drink spartan milk just because of what took place.

It is not accurate to say that people worked at Food Town/Pharm for 20 years and "in the end got nothing." First off, they were paid for their work every week and recieved excellent health care coverage... it is not like they were slaves! They had been compensated. So when the company folded, why were they entitled to anything? Had they participated in the company's stock purchase plan, they would have received $5.00 cash for every share they owned when Spartan acquired the company plus a share of Spartan stock. Even after Food Town and Pharm were/are gone, that share of Spartan stock still has value.

As for Kroger buying leases to keep out competition - that is a standard practice in the industry. Why do you think Food Town bought Josephs' and Centre stores? They could have simply driven them out of business... but that would have left vacant supermarkets for a new competitor to come in. Instead, they bought the stores and closed the ones they didn't want, controlled the lease, and "killed" the location. That's good business.

There is no question that Spartan mismanaged Food Town. If you recall, Jim Meyers, Chairman of Spartan retired abruptly two years after the merger. That was because the Spartan board had decided to fire him based on his arrogance and mishandling of the whole Food Town affair. But by then the damage was done and there was no recovery for Food Town. It had be be cut loose to prevent from dragging the entire Spartan company under.

The Spartan/Food Town merger was a marriage made in heaven. Unfotunately, one party -literally - did not follow the game plan. In fact, you couldn't write a better textbook on how to screw up a sound plan if you tried.

General chaos i stated in one of my comments i am sure that i dont have all of the facts. I am not sure who you are personally. It seems that you may have more information on the remaining local stores that spartan acquired with the foodtown merger. The fiscal year for spartan is up middle of april. hopefully they dont close

I want to say that Food Town was my favorite grocery store, until it closed (I am still bitter). Pharm is my current favorite Pharmacy/Daily Items store. If you guys/gals are in the know, why not work to keep it? Don't make me go to Walgreens or Rite Aid. I like the Pharm and my wife does too.

Sorry that you feel that way.

I wish I could remember the guy that had all those 'bitter pills'...

He must have ate them all.

customer service experiences at Food Town and was disappointed it closed.

I just talked to a source at The Blade. Spartan just announced the sale of The Pharm to Rite Aid. Employees are being told today. I suspect they will transfer script files where Rite Aids are close and close the stores. In areas where there are not Rite Aids nearby, they will likely convert.

Thus ends an era....

Can any of you confirm that the Pharm will be sold or what is happening with it? We have not heard anything for two months and want to know.

Looks like you will be doing your Pharmaceutical shopping at Rite-Aid.

From the Blade

Spartan sells assets of area Pharm stores to Rite Aid

BLADE STAFF

Spartan Stores Inc. said Thursday that has a deal with Rite Aid Corp. to sell “certain assets” of 12 of its 14 Pharm stores in northwest Ohio.

Neither Spartan nor Rite Aid officials would discuss the fate of the 12 stores, all of which are in or near metro Toledo. But a spokesman for Spartan, based in Grand Rapids, Mich., said the transaction will provide possible employment opportunities for Pharm employees within the Rite Aid chain. Rite Aid is the nation’s leading drugstore chain.

Jeanne Norcross, a Spartan spokesman, said her company had given Rite Aid permission to speak with Pharm employees regarding possible job openings.

Spartan bought the Pharm chain in 2000 along with 47 Seaway Food Town supermarkets. Spartan has since sold or closed the groceries.

Company officials said they are negotiating independent transactions to sell assets of the two remaining Pharm stores, located in Sandusky, and Adrian, Mich.
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- Just the KAT, thinking out loud again. :)
<

If man has no tea in him, he is incapable of understanding truth. ~Japanese Proverb

Sorry but you have got your facts crossed. The Executive Vice President of Food Town, David Walrod, was not employed by the company at the time of the "sell out'" (it was actually a merger) nor did he want to take over the management. Walrod had been terminated two years earlier for undisclosed reasons. Generally, when high ranking executives leave suddenly -- well, you can figure out that his leaving must have been more important for the well being on the company than his continued employment.

Rich Iott knew nothing on how to run a chain of stores. it seems as yesterday when Wally handed over the reins of the business that stocks plummeted BIG TIME. Where i come from there is no competetion for groceries Kroger has it locked up with meijers. Wal Mart is no big threat. I blame completely on Spartan on how they buried foodtown stores and now the Pharms. I hear that everything depends on a buyer. Rumor has it that Marcs deeper discount from columbus is entertaing thought of purchasing.

brent m, you have your facts crossed AGAIN!

First, Wally never "handed over the reins". Sure, Rich was President and CEO but Wally stayed Chairman. And Wally stayed very involved in the merchandising/sales side of the business. That was what he loved. He sat in every sales meeting, he reviewed all new items with the buying committee, he help manage pricing. Rich, meanwhile, got involved in the parts of the business that Wally didn't like - advertising, PR, personnel, real estate, finance, etc. This actually freed Wally up to make best use of his talents and utilmately got a better job done on both sides of the fence.

The stock did not "plummet", in fact, it crested. The year before the merger was the most profitable in the comapny's history. Sales and profits continued to increase right up to the merger. Why? Because Wally was smart enough to see the future and his philosophy was to "sell at the top of the curve, not after things have started to slide."

It was apparant that to remain competitve, Food Town had to grow exponentially. The entry level to the "medium sized" chains at that time was considered $5B in annual sales. FT was at only $750,000,000. They were going to be too small to survive against the big chains, but too large to be a successful 'niche' chain.

The Spartan merger was perfect: Food Town acquired $1.2B in wholesale grocery sales that it didn't have and Spartan acquired the expertise to run chain stores (it had 100 stores it had sort of acquired by accident that it did know how to run well).

Unfortunately, Spartan sucumbed to the "survivor mentality' which says that if I am the surviing entity, I must be smarter than you so we'll do everything my way. Spartan ignored and threw away the single most important thing they got with Food Town: some of the best retail grocery store operators in the midwest.

Hey Krazy-Since I'm sure you were present at all of The Spartan Board of Directors meetings, so please explain your post and the link. I would venture a guess that you have never been on a board of directors for anything. If you have, by a slim chance, perhaps you can tell us just how much influence board members have-compared to the chairman? Ah yes, thought so. Well...your post is totally irrelevant. I heartily and compassionately recommend some group therapy and business classes for you and "Brent M".
"Nothing in the world is more dangerous than sincere ignorance and conscientious stupidity." M.L.K.

.

We are all born ignorant, but one must work hard to remain stupid.-Ben Franklin

these comments are all good and informative !

used to have a store down the street from me, and they had a Food Town at Dorr and Reynolds. Shopped at both constantly, especially Pharm-It was handy and convenient for me, as they even carried some fresh vegetables. Also odds and ends like chips, shampoo, vitamins, as well as our prescriptions, even rented movies. Knew everyone in the store by name, and they all knew mine. Then Spartan took over and things were never quite the same.
We still continued to shop at Pharm until they one day closed it without much warning-was told a while later the strip mall owner raised the rent on them again and they said to hell with it. It certainly wasn't due to lack of customers, particularly older folks like us. I don't recall if the Food Town went earlier or later, but hated to see them go too.

----------------------

BRING THE TROOPS HOME-NOW!

_________________
"They keep talking about drafting a constitution for Iraq.Why don't we give them ours? It was written by a lot of really smart guys, and we're not using it any more".

-------------------------------------------------------------------------

'I used to have compassion, but they taxed it and legislated it out of existence.'

Our Drug Store Wars have been going on for as long as our Hospital Wars (including Childrens Hospital - we WILL cannibalize our young). They are a parrallel universe of our empty Big Box stores still paying the lease to keep out adaptive reuse (Q. why are we tearing down our schools? - A. To fill up our Land Fills {once known as marshes, headed by a former TPS Board member} ).

The Swayne Field (of Mud Hens fame - the first steel skeleton stadium in the world) Rite-Aide (smack dab on the site of a gorgeous People's Trust Bank bldg. Q. How do "developers" make $? - A. Tear down what we already have. - just like Chicago's Gold Coast "WestGate Ctr" developer is posing as of "Toledo heritage" {her Chicagoan father was hired by Sears & Roebuck to plan all their new stores - including the corn fields by Houghton Cemetary where he saw another cheap cornfield across Central Ave. - just look at the jig-saw ownership puzzle at WestGate - much like the British Empire carving up Iraq, Middle East, Africa, Pak-India, etc.)
WAS the World's Highest Grossing Rite-Aide in 2000 when they formed it out of 3 pre-existing stores - keeping busy 1 licensed pharmicist and 8 low paid pharmacy Aides (hence the name) & reaping $$$.

RobertBrundage

Robert, please call your therapist first thing Monday morning.
Get that medication adjusted.

My daughter has worked part time at the Pharm for almost 8 years. She put herself through college with this job. As reading through the postings, I noticed "in the end got nothing." Just for the record, Spartan and the UFCW Local 911 devised a "severance pay" for the employees losing their job. Full time workers who have worked for over 7 years will recieve $500 and any vacation and personal days unpaid. My daughter, with almost 8 years of experience will recieve $200 and any vacation and personal days unpaid. Luckily she has a full time job, however, the full time workers, who have worked for many years- can not even afford to pay bills for atleast one month.

Spartan bought Foodtown/Pharm chain for 100+ million dollars. They closed Foodtown over the years and sold the Pharms to Rite-aid for a whopping 12-Million. Hows that for profit? Some Pharm stores were remodeled, with a brand new logo (Discovey Dan). Where did that money come from, one can only wonder.

Either way, we can only hope for the best for all the displaced workers- not just Spartan employees, but for those in and around our area.

observation. Thanks for posting it. I am disappointed the Pharm on Central and Douglas is closed.

I visited the PPP today only to find it empty of 90% of its stock. Gone were the .88 cent 2-litres, the video store, the seasonal displays I enjoyed scouring through in search of cheap tiki torches or American flags made in China. I needed to buy a bottle of Advil and had to endure an excruciating ride down S.Detroit with every bump on the washboard intensifying my headache to visit the Rite-Aid at Glendale and S. Detroit.

As a former employee of Foodtown I am deeply sadden by the events of the past several years which have led to the demise of Foodtown and the Pharms.

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- Just the KAT, thinking out loud again.

If man has no tea in him, he is incapable of understanding truth. ~Japanese Proverb

After decades of buying meds locally I am saving a ton of money, buying online. It's the same stuff made by the same people. If you don't feel comfortable or safe buying online, sites like LINK REMOVED make it easy to find pharmas you can trust. Just my two cents.

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