It looks like Marks & Spencer (London) is finally about to end its foray into the U.S. market.
The British retailer who sold Brooks Brothers (New York) last fall to Retail Brand Alliance (Enfield, Conn.-based owner of Casual Corner, August Max and Petite Sophisticate), is said to be close to reaching an agreement to sell its Kings Super Markets Inc. (Parsippany, N.J.) to Gristede's Foods, part of the Red Apple Group (New York).
A spokeswoman for Marks & Spencer said the two retail organizations have agreed to negotiate with each other exclusively for a three-week period.
The sale of Kings could raise as much as $175 million for the troubled Marks & Spencer, more than the $108 million it paid for the chain in 1988, analysts said. It sold Brooks Brothers for $225 million in cash, about a third of the $750 million it paid for the clothing business in 1988.
If a deal with Gristede's is not reached within three weeks, Marks & Spencer could accept offers from other suitors. But securing another deal might be difficult, analysts noted. Kings has been for sale for more than a year, and several rivals in the United States looked at the operations, but decided against bidding. The upscale food retailer has 25 stores in New Jersey and New York.