NEW YORK, NY - D’Agostino has received financial help from none other than its fellow New York City grocery rival, Red Apple Group, owner of grocer Gristedes. The benevolent move has sparked many rumblings that the two iconic chains may merge before the year is out.
According to the New York Business Journal, John Catsimatidis, Red Apple’s Chairman, has set up a revolving credit facility for the D’Agostino operation. Nicholas D’Agostino III, D’Agostino’s Chief Executive Officer, says he expects a joint venture to be made within a month’s time, adding, “They’ve already got skin in the game, so there’s a good chance our plans will go forward.”
Both longtime chains have been struggling to find their footing in a market that has seen an influx of national chains like Whole Foods, Trader Joe’s, and Fresh Direct. A merger may be just what the doctor ordered to help both get back on the right track. The news comes just a few months after another New York grocer, Fairway Group Holdings, filed bankruptcy due to mounting competition in the market.
“By bringing New York’s two old supermarket families together, we’re hoping two plus two will equal five,” Nicholas continued.
Will the two rivals come together to take on these New York mega chains? AndNowUKnow will update you as more plans are revealed.
