Caldor, Kmart eye Alexander's? Bradlees' offer on table, but bidding is still open - K Mart Corp., Alexander's Discount PLC

Discount Store News, Nov 2, 1992 by Mary Ellen Kelly

NEW YORK -- Are Caldor and Kmart getting ready to join Bradlees in bidding for some Alexander's sites?

Despite reports that Caldor and Kmart are interested in making bids for some of the same Alexander's stores on which Bradlees has made a bid, no official counter bids had been placed at press time by either chain. The auction of the stores is open, however, until the United States Bankruptcy Court for the Southern District of New York holds a hearing, scheduled for Nov. 12 at 2 p.m.

Caldor spokesmen would neither confirm nor deny reports that the discounter was even interested in the metropolitan area stores.

A Kmart spokeswoman acknowledged that the company is looking to expand in the New York metropolitan market, but would not say whether the Alexander's locations are being considered. The chain is considering opening a new 130,000-sq.-ft. store near Co-op City, a massive housing complex in the Bronx, which would be its first unit in that borough and the fourth in the city, reported Crain's New York Business last month.

Andrew Tananbaum of Century Business Credit Corp., and chairman of the creditor's committee, stated that "I haven't been informed of a formal bid from Caldor. We don't physically have in and such a bid." Bradlees had entered into a deal Sept. 23 to buy six former Alexander's sites from the bankrupt discounter. If approved by the bankruptcy court and if no higher counter bids are received, Bradlees would become the leading fullline discounter in the city's five boroughs, and be among the top three discount chains in the Greater New York market.

Alexander's estimated the value of the proposed transaction with Bradlees would be worth roughly $82 million. of which $28.3 million would be in cash, and the balance would be in the present value of future rental payments.