May 23, 1992 |
Ending an ill-fated expansion into the cutthroat world of retailing, Pacific Enterprises, best known as the parent of Southern California Gas Co., said Friday that it has found buyers for its money-losing Thrifty Corp. subsidiary. Leonard Green & Partners, a respected Los Angeles investment group, will buy Thrifty Drug, the oldest and largest drugstore chain on the West Coast, Big 5 sporting goods and three smaller retailing chains with operations outside California.
May 23, 1992 |
The buyer of Thrifty Drug Stores and Big 5 has an unusual reputation among takeover specialists--widespread respect. Los Angeles-based Leonard Green & Partners, led by a low-key veteran of the booming 1980s buyout years, Leonard I. Green, will purchase five of six retailing units of Thrifty Corp., the troubled subsidiary of Pacific Enterprises. The choice has been greeted with relief by both Southern California executives and union leaders. "I think it's good in all respects," said Michael E.
May 16, 1992 |
Pacific Enterprises is reportedly very near striking a deal to sell its Thrifty Corp. subsidiary to one of two investment groups that have been negotiating to acquire the money-losing retail operations, which have dragged down their parent company for the last several years. According to sources close to the company, Pacific Enterprises, the parent of the Southern California Gas Co.
May 8, 1992 |
At a raucous annual stockholders meeting Thursday, Pacific Enterprises President and Chief Executive Willis B. Wood Jr. gave shareholders more bad news--that the company will take a special charge he later estimated to be at least $325 million. Without that charge--equal to at least half the $650-million book value of Thrifty Corp., Pacific Enterprises' ailing retail subsidiary--the parent company's first-quarter earnings would have been about 10 cents a share, Wood said.
CALIFORNIA | LOCAL
May 1, 1992 |
Thrifty Drug, the oldest and largest drugstore chain in Los Angeles, did not hesitate to rebuild the four outlets it lost to the fire and vandalism of the Watts riots in 1965--a decision, chain officials recall, that signaled their commitment to South Los Angeles and its residents. But Thrifty is not likely to undertake a second round of rebuilding in South Los Angeles now.
April 28, 1992 |
Pacific Enterprises confirmed Monday that it is actively discussing the sale of its money-losing Thrifty Corp. retailing subsidiary--including the Thrifty Drug chain--with several potential buyers. The company declined to reveal the names of the parties engaged in acquisition talks, but industry publications have reported that they have at some point included Kmart Corp., whose retail operations include Payless Drug and Sports Authority outlets, and Walgreen Co.
March 12, 1992 |
Pacific Enterprises on Wednesday named Joseph H. Coulombe, founder of the Trader Joe's market chain and a pioneering merchandiser, as head of its ailing retailing operations. The surprise appointment of the 61-year-old Coulombe, a retail consultant since resigning as Trader Joe's chief executive in 1989, is intended to provide additional management muscle for shoring up Pacific Enterprises' ailing store chains so that they may fetch greater value from potential buyers, company officials said.
March 7, 1992 |
Employees of Pacific Enterprises may have engaged in illegal insider trading of the company's stock before a surprise announcement Feb. 4 that the parent of Southern California Gas Co. would suspend payment dividends and sell many of its subsidiaries, according to President and Chief Executive Willis B. Wood Jr. In an unusual internal letter to employees dated Feb.
February 18, 1992 |
There are plenty of excellent reasons to sell sporting goods in Southern California, but easy profit isn't one of them. White-collar unemployment has sapped some of the region's appetite for pricey exercise machines, and the five-year drought--despite the recent flooding and snow storms--has hurt sales of ski equipment, normally a lucrative corner of the business. Making things even tougher has been a proliferation of stores and their zest for price cutting.
February 16, 1992 |
When executives of Pacific Enterprises moved their headquarters in 1990, they went first-class. They chose the new Library Tower, then the most expensive--and still the tallest--office building in downtown Los Angeles. To furnish the new offices, they installed custom wood paneling from Africa, a dramatic circular stairway to connect eight of the 12 floors and a $3-million art collection. Boardroom chairs for 16 directors cost $8,000 each. Chief Executive James R.