Food Lion plans store closingsFood Lion Inc. announced...

BUSINESS DIGEST

January 08, 1994

Food Lion plans store closings

Food Lion Inc. announced yesterday that it will close 88 stores in 1994, affecting about 3,500 employees, and pay for the reductions with a $170 million charge against earnings.

Food Lion, which operates more than 1,000 grocery stores in 14 states, said the closings reflect poor performance at individual stores. More than half of the closings are in Texas and Oklahoma. The shutdowns will affect 1,300 full-time and 2,200 part-time employees, but the number of layoffs planned was not disclosed.

Laurel Bancorp posts gain

Laurel Bancorp Inc. said net income in the latest fiscal year rose 36 percent, to $1.53 million, or 92 cents a share, from $1.12 million, or 72 cents, a year earlier.

Laurel Bancorp is the parent of Laurel Federal Savings Bank. The figures for the year, which ended Nov. 30, were unaudited, the company said.

Purchase of M. P. Video under way

Kirschner Medical Corp. of Timonium said yesterday that it had reached a tentative deal to sell its M. P. Video Inc. unit to Aberlyn Holding Co. Inc., a Boston investment banking firm.

Kirschner said M. P. Video generated $5.5 million in sales in 1992, but did not contribute to the overall company's profit, which was $3.5 million for the first nine months of the year on revenue of $55 million.

The purchase price was not disclosed, but Kirschner said it would receive a combination of cash and promissory notes, and the buyer will assume certain liabilities of the unit.

German investor buys GTS stake

Joseph H. Domberger, an investor from Munich, Germany, has agreed to purchase a 4.3 percent stake in GTS Duratek Inc. of Columbia, for $1 million and has the right to elect one member to the GTS board.

Mr. Domberger purchased 281,250 common shares for $4 each on Dec. 22 and plans to purchase an additional 62,500 common shares for the same price by Feb. 28, according to a filing with the Securities and Exchange Commission.

MTA picks Gray Kirk/VanSant

Gray Kirk/VanSant of Baltimore has been selected to be the next advertising agency for the Maryland Mass Transit Administration. The three-year contract is worth $2.1 million, an MTA spokeswoman said, and includes an option for a fourth year.

The ad agency will replace Eisner & Associates, which has had the account for seven years. The contract requires approval from the state Board of Public Works.

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