Ralphs Gives Workers Sale Update

More than 16,000 employees of Ralphs Grocery in Compton, anxious to know who the company’s new owner will be, heard from management on Monday for the first time in seven weeks. But it’s unlikely that the letter will allay their fears about the future.

Local labor leaders recently expressed concern that employees would be forgotten in a furious bidding battle for Ralphs.

The company was put up for sale by its owner, Federated Department Stores, after the retailer became a takeover target on Jan. 25. The next day, Ralphs management issued a memo noting that speculation was rampant in the press that Ralphs would be sold.

Since then, both Lucky Stores of Dublin, Calif., and Ralphs management reportedly have been bidding for the 129-store chain.

As the letter noted, the battle for Federated developing between R. H. Macy & Co. and Campeau Corp. puts on hold a decision about Ralphs.

”. . . The closely related determination of Ralphs sale is dependent upon who acquires Federated,” Chairman Byron Allumbaugh said in the letter. “Therefore, it may be some time before the possible sale of Ralphs can be determined.”