News Brief

Andronico’s plans recapitalization with new lenders and investors

Berkeleyside yesterday reported on the financial difficulties that seem to be besetting Andronico’s, which has four supermarkets in Berkeley. Today, the family-owned company sent Berkeleyside a statement written by CEO Bill Andronico, announcing plans to recapitalize the company:

As with other small family companies, Andronico’s continues to operate with many business challenges on a daily basis. The economic climate of the past several years has also contributed to these difficulties. Andronico’s has been a closely held, family business since it began in 1929 and we are dedicated as always to insure our commitments to our vendors, employees and communities are met. We are working on a plan to recapitalize the Company that brings in lending/investor partners to replace the existing lender group and, additionally, provides growth capital. Andronico’s looks forward to being a part of our community for another 80 years and more. We thank our vendor and staff network for their continued support.

Print Friendly
Tagged
  • http://www.facebook.com/aglimme Aaron Glimme

    I really enjoy shopping at Andronico’s and know several of the employs well. I hope things work out.

  • Fran

    We were excited when the University store opened, and we regularly shop there. You have our support! 

  • guest

    You can’t beat Andronicos — one stop quality and all the ingredients foodies need. Please stay in our community!

  • Alina

    Thanks for the update, Berkeleyside!  Kind of cool that this got their attention :)

  • joanna

    I have a feeling that Andronicos will have a close a few locations to become profitable.  Most likely the Telegraph and University locations in Berkeley.  I live a block from the Telegraph location and I shop there very occasionally but every time I’m there, the store is like a ghost town.  There is hardly anyone ever there.  From a business perspective, if you have 2 failing stores that cost more to run then they bring in, it makes sense to close the stores and put that extra money towards improving the rest of the stores in the chain.

  • Iceland_1622

    They ( upper management and owners ) are performing what Tom Peters called ‘scrambling’ and apparently are going to give it one last push before the beast dies a long overdue death.  I have moved any and all of my shopping to TJ’s and the Berkeley Bowl West and will not longer suffer the indignities of indifferent employees or $7. boxes of generic breakfast cereal in a stores that is run down, neglected, broken and abandoned with an outdated business model from the distant past.  No life, no joy, no excitement, no colors and worse no attractive women and interesting people shopping there.  Translation:  Stay away and wait for a progressive and forward thinking group of smart and wise people to take this over and transform and remodel it.  

  • name

    So right.  The Telegraph store is a costly morgue.
    Goodbye Bill; hello Fresh & Easy.

  • http://www.webhamster.com/ The Sharkey

    I think they still have time to turn it around if they do everything right in this last effort, but your predictions are probably accurate.

    They’re going to need to do a hell of a lot of work to improve their stores, differentiate themselves in the marketplace, and also combat the negative opinions they’ve engendered in the community as a result of the things you mention.

    Maybe they can team up with some Business majors at Cal or something.

  • EBGuy

    I’ve always thought they’ve had a ‘monopoly’ on the Southside (Telegraph Ave store) with the density of students in the area (plus they do offer a 5% student discount). I wouldn’t count them out in that location.
    If the University Ave. store closes its doors, I imagine Mi Terra will be the big winner.  I’m skeptical that central Berkeley (University & Sacramento) can support a grocery store now that TJs has opened.  CVS or Walgreens?  Place your bets.

  • Bruce Love

    The news wires have it that Andronico’s filed bankruptcy today.

    Here’s the Murky News version:

    http://www.mercurynews.com/news/ci_18733208?source=rss

  • Anonymous

    This may or may not be helpful to those involved with this very predictable and foreseeable mess. Let’s hope that the next group will not be more of the same old same old.  If they read or listen and are open to any new ideas and thinking, just start here with any of this man’s books:  Tom Peters on Chaos:  
    http://www.amazon.com/Thriving-Chaos-Handbook-Management-Revolution/dp/0060971843/ref=pd_sim_b_4