Calling Supervalu stock price performance abysmal, Blackwells Capital sent an open letter to Supervalu’s board of directors seeking to immediately engage with them to review business improvement initiatives. Blackwells owns and represents approximately 3.6 percent of Supervalu’s common stock and equivalents.
Addressing Supervalu’s 17.3 million sq. ft. real estate, Blackwells Capital analysis said it was worth much more than multiples of the company’s $615 million market capitalization and that it wanted the company to ‘unlock’ it. Blackwells Capital also recommended that Supervalu sell 30 percent, or 65, of its struggling 217 stores.
In the letter, Blackwells Capital urged Supervalu to expeditiously fill the current CFO vacancy formerly held by Bruce Besanko, who moved to Kohl’s in June. They requested Supervalu to pay a dividend and commit to growing that dividend over time while putting an active and substantial share buyback plan to defend shareholder value.