Following a financial dispute, Jurgensen's--the posh grocery chain--announced Tuesday that it has terminated its merger agreement with Old Dominion Financial Corp. and is seeking to merge with Yucaipa Capital Corp.
An agreement in principle was struck with Yucaipa, a privately held Riverside firm headed by investor Ron Burkle, under which Yucaipa would acquire Jurgensen's outstanding capital stock through a merger valued at about $3.2 million.
Old Dominion, a privately held, year-old firm based in Carson, had offered to pay about $3.6 million in cash for the 10-store chain operated by Pasadena-based Jurgensen's Inc., where Southern California gourmets and celebrities go for such pricey delicacies as fresh truffles and pate de foi gras. But that deal, announced last May, fell through last month.
Jurgensen's and Old Dominion offered different explanations of why their merger failed to materialize.
Ted Clabaugh, president of Old Dominion, said that after close inspection, Jurgensen's posh stores were deemed too financially troubled to resuscitate. "The company has sustained losses for four years; it needs new management," said Clabaugh. "The company has had a series of problems . . . part of which is its competition."