Andronico's

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Andronico's Community Markets
Type Private/Grocery
Industry Retail
Founded Berkeley, 1929
Headquarters San Leandro, California
Key people CEO John Clougher
COO Justin Jackson
CFO Gary Barrett
CAO Bill Andronico
DOM Matt Tesoriero
Products Organic produce, artisan bakery, prepared foods, catering, meat, seafood, liquor, wine, cheese, floral
Owners Renovo Capital
Website andronicos.com
Andronico's store at Berkeley

Andronico's Community Markets, known locally as "Andronico's", is a supermarket chain based primarily in the San Francisco Bay Area. Its first store was founded in 1929 on Berkeley's Solano Avenue by Greek immigrant Frank Andronico.[1]

In late 2011, Andronico's filed for bankruptcy. A new group of investors has assumed management of the chain during the reorganization process.

Beginnings[edit]

Bankruptcy and reorganization[edit]

During the mid-2000s, Andronico's lost market share to both conventional and premium national supermarket chains. The company began borrowing money to finance expansion into suburban areas, but these new locations failed to become profitable. After closing the Walnut Creek store in 2006 and selling the Danville store the same year to reduce company debt, the company focused on raising capital and remodeling the store located at 14th and Irving in the Inner Sunset neighborhood of San Francisco.

Andronico's filed for Chapter 11 bankruptcy in August 2011, citing $10 to $50 million in debts amassed during its unsuccessful effort to expand into the suburbs and seeking a buyer for itself.[2] In October 2011, the company was purchased for $16 million by a private equity firm called Renwood Opportunities Fund, a partnership between Renovo Capital and Rosewood Private Investments.[3] Shortly thereafter, the store on University Avenue in Berkeley was closed, followed by the Telegraph Avenue store.

New Management[edit]

Late in 2011 during reorganization, executives and buyers who once worked for Whole Foods Market have joined the management team of Andronico's. Justin Jackson, COO, manages the remaining five stores in the San Francisco Bay Area. He was originally hired as a consultant by Andronico’s after leaving Whole Foods. John Clougher, who was president of Whole Foods’ Pacific Northwest region, was chief executive officer of Andronico’s briefly before taking that title at A.G. Ferrari Foods, a local distributor owned by Renovo Capital, the Dallas-based firm that acquired Andronico’s out of bankruptcy last October. Bill Andronico, the grandson of the company’s founder and its former president and CEO, is chief administration officer.

Under the new ownership, Andronico’s stores have been remerchandised — dropping approximately 7,000 slow-moving SKUs and replacing them with approximately 5,500 new items. Sales at Andronico’s have reportedly improved nearly 10% since 2011. The process of remodeling all five stores over the next two years is also under way.[4]

Locations[edit]

Andronico's has five locations, two in Berkeley, and one in Los Altos, San Francisco and San Anselmo. The Walnut Creek store closed December 22, 2006, and the Danville location closed on September 16, 2006, after eight years, and was sold to, Lunardi's Super Markets. The Palo Alto store closed July 24, 2011.[5] Two locations in Berkeley closed in 2011, one on University Avenue and the other on Telegraph Avenue.[citation needed]

References[edit]

  1. ^ http://www.andronicos.com/about_andronicos/about_andronicos1a.html
  2. ^ Andronico's Files for Bankruptcy, NBC Bay Area, August 22, 2001
  3. ^ Yu, Jaehak (2011-10-16). "Company saves Bay Area's AG Ferrari Foods, Andronico's from bankruptcy". Dailycal.org. Retrieved 2013-11-20. 
  4. ^ Jun. 18, 2012 Elliot Zwiebach (2012-06-18). "Supermarket News". Supermarket News. Retrieved 2013-11-20. 
  5. ^ Chris Kenrick (2011-07-18). "Andronico's market to close July 24 | News | Almanac Online |". Almanacnews.com. Retrieved 2013-11-20. 

External links[edit]