SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of report: January 16, 1998
(Date of earliest event reported)
HANNAFORD BROS. CO.
(Exact name of registrant as specified in its charter)
Maine 1-7603 01-0085930
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File No.) Identification No.)
145 Pleasant Hill Road, Scarborough, Maine 04074
(Address of principal executive offices) (Zip code)
Registrant's telephone number: (207) 883-2911
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Item 5. Other Events.
On January 16, 1998 Hannaford Bros. Co. announced that it will record
a pre-tax, non-cash accounting charge of approximately $40 million to its
fourth quarter earnings. The charge relates primarily to a writedown in
the value of certain southeastern stores. The writedown is prompted by
SFAS No. 121 (Accounting for Impairment of Long-Lived Assets and for
Long-Lived Assets to Be Disposed Of), which now requires goodwill to be
allocated on a store-by-store basis. This new rule has gone into effect
since the date that Hannaford made its initial entry into southeastern
markets by purchasing 20 Wilson supermarkets in North and South Carolina.
In addition, Hannaford announced that it will close certain stores in
non-core southeastern markets. At the same time, Hannaford reiterated its
plan for continued investment and expansion in key southeastern markets.
A press release setting forth these announcements in greater detail is
filed herewith as an exhibit.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
99.1 Press release dated January 16, 1998, announcing
a writedown of assets and continued expansion in
selected southeastern markets
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned, hereunto duly authorized.
HANNAFORD BROS. CO.
Date: January 16, 1998 By: /s/ Charles H. Crockett
Charles H. Crockett
Assistant Secretary
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HANNAFORD BROS. CO.
EXHIBIT INDEX
Exhibit
Number Description
99.1 Press release dated January 16, 1998,
announcing a writedown of assets a and
continued expansion in selected southeastern
markets
Exhibit 99.1
Charles H. Crockett
207-885-2349
FOR IMMEDIATE RELEASE
FRIDAY, JANUARY 16, 1998
HANNAFORD TO RECORD AN ACCOUNTING CHARGE AND CLOSE SEVEN
NON-CORE STORES TO BETTER FOCUS OPERATIONS; CONFIRMS INTENTIONS
TO INVEST $50 MILLION IN KEY SOUTHEASTERN MARKETS IN 1998
Scarborough, Maine - Hannaford Bros. Co. (NYSE-HRD), a multi-regional food
retailer, today announced that it will record a pre-tax, non-cash
accounting charge of approximately $40 million to its fourth quarter
earnings. Most of this charge relates to a write-down in the value of
assets, including goodwill, in certain southeastern stores. The write-down
is prompted by SFAS No. 121 (Accounting for Impairment of Long-Lived Assets
and for Long-Lived Assets to be Disposed Of), which requires goodwill to be
allocated on a store-by-store basis. SFAS No. 121 did not
exist when the Company entered the Southeast.
The remainder of the charge relates to the costs of closing seven
southeastern non-core stores where the Company foresees limited opportunity
for profitable growth. This asset-valuation charge will affect
the fourth quarter and full year 1997 results, and will allow Hannaford to
focus on key southeastern markets going forward.
Hannaford also reiterated its plan to invest approximately $50 million in
new and remodeled stores in its key southeastern markets in 1998.
Hannaford expects its 1997 operating results, prior to the accounting
charge, to be in line with expectations. These results will be released on
January 22, 1998.
