Daily Record FINANCIAL NEWS &
MONDAY, OCTOBER 24, 2016
Vol. 103, No. 246 • Two SecTioNS
35¢ www.jaxdailyrecord.com
Supervalu selling Save-A-Lot chain
After previously considering plans to spin off Save-A-Lot with an initial public offering, Supervalu Inc. instead last week agreed to sell the supermarket chain to Toronto-based private equity firm Onex Corp. for $1.365 billion. Save-A-Lot has 1,368 stores in 37 states, including 12 in the Jacksonville metropolitan area. About two-thirds of the stores are operated by licensees, with the rest owned by the company. The sale, which the companies hope to complete in January, will likely have little impact
on the discount grocer’s business. As part of the deal, Supervalu and Onex are signing a five-year agreement for Supervalu to continue providing operational services for Save-A-Lot. Save-A-Lot’s sales have been struggling. Two days after announcing the agreement,
Supervalu reported earnings for its second-quarter ended Sept. 12 and said Save-A-Lot’s total sales fell 2.8 percent to $1.06 billion, with identical store sales (sales at stores open for more than one year) dropping 5.2 percent. In the company’s conference call, Save-A-Lot CEO Eric Claus said sales were impacted by deflation in food prices and a reduction of food stamp benefits in 22 states in which it operates. Claus said the company’s level of sales under the Supplemental Nutrition Assistance Program, or
SNAP, “is meaningfully higher than other retailers.” As Save-A-Lot changes ownership, the chain expects to continue growing, with plans to open 70 new stores this fiscal year, Claus said. “Overall, we are facing strong headwinds today. But with time, we believe they will subside and our long-term strategies will take stronger hold. When the tide will turn, I believe Save-A-Lot will ride the upside to that wave,” he said. BASCH CONTINUED ON PAGE A-7
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State to request rehearing for Mathis Action will likely delay push to get license back
Honoring a Florida Coastal law student through scholarships
Photo by Bobby King
By Marilyn Young Editor
Lindsay Tygart, right, introduces Florida Coastal School of Law President Dennis Stone during the Christian Winicki scholarship fundraiser as part of the school’s Founders Day weekend. Also pictured are Chelsea and Kiely Winicki, wife and daughter of the late Christian Winicki, and Deedee Gasch, a scholarship director. See more photos from Saturday’s event on Page A-8.
Stepping up to help local veterans By David Chapman Staff Writer Down a winding hallway of the Veterans Affairs Outpatient Clinic’s second floor, a group of people sat patiently and waited their turn. On this day, they weren’t there for medical help. Instead, the group was seeking assistance on Homeless Veterans Legal Day, part of the 17th annual Homeless Veterans Stand Down series of events hosted by the city’s Military Affairs & Veterans Department. Tables were set up just inside the office for one-on-one consultations, with one manned by Florida Coastal School of Law student John Holzbaur.
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The 23-year Navy veteran took time to offer legal help to those who kept coming through the door with myriad issues impacting their lives. His shirt — a blue short-sleeve buttondown emblazoned with “Jacksonville Veterans Court” — shows it’s not the first time he’s helped this population. “It matters,” he said. Many of the people seeking guidance have issues with driver’s licenses or paying child support. Others have more serious problems, like a veteran Holzbaur helped Friday who had a warrant for his arrest and substance abuse issues. He just wanted help. Usually the first step is calming them down, said Holzbaur. VETERANS CONTINUED ON PAGE A-10
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John Holzbaur volunteered Friday to help veterans with legal issues.
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Photo by David Chapman
Legal community volunteers at city event
It appears the criminal case against Kelly Mathis isn’t over yet. Defense attorney Mitch Stone said Sunday the state is going to proceed with a request for a rehearing at the 5th District Court of Appeal. The appellate court this month threw out 103 gambling-related convictions against Mathis, the only one of 57 defendants in the Allied Veterans of the World investigation to face prison time. He was sentenced to six years but allowed to stay free during the three-year appeal. The request for a rehearing also will likely delay proceedings to begin the process of getting Mathis’ law license back. It was suspended after the jury’s verdicts in October 2013. The appellate court ordered a new trial to give Mathis the opportunity to Mathis present evidence to defend himself, which he was not allowed to do during the 2013 case in Seminole County. Stone said he expects the appellate court’s decision — which he called “wellreasoned, well written and supported by the law” — to stand. He said the defense team would like Attorney General Pam Bondi and the statewide prosecutor to consider not prosecuting Mathis again, but expects they will. Mathis was labeled by Bondi’s office as the “mastermind” of a $300 million gambling ring operated by Allied Veterans through dozens of internet cafes. The former Jacksonville Bar Association president contended he was only the nonprofit’s lawyer and was not involved in the operation of the business. The $6 million he received from Allied Veterans was for legal fees, he said. The group also donated about $6 million to veterans’ charities. LICENSE CONTINUED ON PAGE A-10
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