American Stores Co. said it has completed the previously announced sale of 74 Jewel Osco combination food and drug stores and a general merchandise warehouse to Albertson's Inc.
American Stores said the $325 million realized in the sale will be used to reduce long-term debt.The stores are located in Texas, Oklahoma, Arkansas and Florida and the warehouse is located in Ponca City, Okla.
The sale price for the business approximated the book value of the assets, a spokesman said. "Because of costs incidental to the sale, the company expects to show a loss on the transaction of less than $20 million."
The company also said the operations would not be profitable for the first quarter of fiscal year 1992.
J.L. Scott, president, said the sale is consistent with American Stores' strategy is to divest stores that are underperforming to concentrate on markets with good performance and strong market shares.