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đź”´ PRIVATE EQUITY OWNED
Safeway
grocery · Pleasanton, CA
PE Firm
Cerberus Capital Management
Acquirer
Albertsons (PE-backed)
Year Acquired
2015
“Cerberus promised no store closures. Then closed 160+ stores.”
The PE Playbook
- •Cerberus-led group acquired Safeway for $9.2B in 2015, financing ~$7.8B through debt; promised 'no store closures are expected'
- •Closed 160+ grocery stores nationwide post-merger, including 40 in Colorado alone within five years
- •Loaded the combined Albertsons empire with $12.5B in bondholder debt, consuming resources that could fund store improvements
- •Attempted a $4B special dividend to PE owners ahead of Kroger merger — blocked by a Washington State court
Since the Acquisition
- â–¸168 stores closed across eight states as a condition of the merger, with 40+ Safeway/Albertsons locations closed in Colorado alone
- â–¸12 more Safeway stores across Colorado, Nebraska, and New Mexico announced for closure in 2025, affecting 600+ workers and creating food deserts
- â–¸Nearly 400 corporate staff laid off in February 2025; another 225 cut from the Phoenix office
- â–¸Albertsons' own CEO testified that its prices are higher than competitors like Walmart and Kroger