The firm, which operates 406 stores in nine states and theDistrict of Columbia, under brands such as A&P, Sav-A-Centerand Waldbaum's, has been working for two years to get rid of theFarmer Jack chain, which it acquired in 1989. The company is alsonegotiating with several buyers for its 21 Sav-A-Center stores inLouisiana. Haub said in the conference that A&P expects to getup to $180 million for all the stores it's selling.

Eric Claus, president and CEO, said in the call Friday thattotal sales were impacted by the close of the Midwest operations."It wasn't an easy decision, but it was necessary," Claus said."Out of 66 Farmer Jack stores, 20 were sold to Kroger, 23 were soldto various independents and 23 went dark, along with twodistribution centers. The Sav-A-Centers deal is well advanced,we're going to sell it as one unit. We expect to conclude a deal inthe early fall; probably, but we're not certain."

The Pathmark deal is expected to add 141 stores to the company'sportfolio, with most of the stores in the Northeast. "We're notlooking to close any of the stores," Haub said in the conference."Their format is complimentary to ours, and we have differentcustomers. If there are underperforming stores, we'll look to seehow to improve them."