Exhibit 99.2
For Immediate Release Contact: Charles H. Crockett
May 31, 2000 (207) 885-2349
HANNAFORD ANNOUNCES THE CLOSING OF THIRTEEN SOUTHEAST STORES
(SCARBOROUGH, ME)--- Hannaford Bros. Co. (NYSE-HRD) announced today that the
company plans to close 13 stores in the Southeast. Those include eight in the
Charlotte, North Carolina market as well as two locations in Fayetteville, North
Carolina and one each in Wallace, Lumberton, and Rocky Mount, North Carolina.
Retail employees at those sites will be offered employment opportunities with
area Food Lion stores. The stores will be closing during the week ending June
10, 2000.
"This decision was a difficult one to make," said Hugh G. Farrington, President
and CEO of Hannaford. "We value our relationships with our associates and the
communities in which we do business. We evaluated all of our options carefully
before coming to the conclusion that we had to take this action at this time."
In a separate announcement, Delhaize America, Inc. (NYSE: DZA, DZB) and
Hannaford Bros. Co. (NYSE: HRD) today announced the submittal of a divestiture
plan to the Federal Trade Commission for its consideration and approval. The
submission of the proposal is a required step for obtaining regulatory approval
of the acquisition of Hannaford by Delhaize America.
The divestiture plan includes agreements for the sale of 38 Hannaford stores in
Virginia and North Carolina. Twenty Virginia stores will be sold to an affiliate
of Cincinnati-based Kroger Co. Winston-Salem-based Lowe's Foods will purchase
twelve Hannaford stores and one site under construction in North Carolina.
Another five North Carolina stores will be sold to Richlands, N.C.-based
Sylvester/Floyd Group, which operates 26 Piggly Wiggly-affiliated supermarkets.
The three buyers will provide employment opportunities for store employees.
The divestiture sales are contingent on FTC approval of Delhaize America's
pending $3.6 billion merger with Hannaford. Hannaford and Delhaize America
believe their divestiture plan fully addresses the antitrust concerns identified
by the FTC staff in its review of the Hannaford transaction. Following a
favorable review of the divestiture plan, the acquisition will be reviewed by
the FTC Commissioners for their approval. Delhaize and Hannaford anticipate a
closing date on the Hannaford merger prior to August 1, 2000.
Following the merger, Hannaford will become the third banner owned by Delhaize
America, the parent company of Salisbury, N.C.-based Food Lion and Tampa,
FL-based Kash n' Karry.
Founded in 1883, Hannaford will retain its corporate headquarters in
Scarborough, Maine. The company will own and operate 104 supermarket and food
and drug combination stores in Maine, New Hampshire, Vermont, Massachusetts, and
New York once the merger is complete. Its web site is www.hannaford.com.
