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Community Groups Denounce Avanza's Predatory Corporate Practices

Community groups battling unfair and predatory business practices at Avanza exerted enough pressure on the company that its parent announced it will close the two Chicago Avanza stores.
May 22, 2004

Community Groups Denounce Predatory Corporate Practices

Avanza to Close: Leaders Urge Avanza to Offer Severance to Employees

Community groups conducting a grassroots campaign to draw attention to the unfair and predatory business practices at Avanza exerted enough pressure on the company that its parent, Nash Finch, announced this week it will close the two Chicago Avanza stores.

Coalition leaders are now calling on Avanza to do one thing right by ensuring that employees receive severance benefits as the Company abandons the Chicago market.

The request was made today during a press conference and rally in front of the Avanza Supermarket at 5220 S. Pulaski in Chicago on Saturday, May 22, 2004. The second Avanza store is located at 2551 W. Cermak in Chicago. Both stores are scheduled to close June 19.

Since the opening of their stores in fall 2003, Avanza has established a routine practice of disrespecting workers by being dishonest about pay, hours, job security and discriminative practices relating to age, pregnancy, and union interest. In addition, Avanza has provided the community with poor customer service and mediocre product offerings.

The company has received $300,000 in taxpayer money; $150,000 for a worker training program at the Cermak and Rockwell location and an additional $150,000 in TIF for the Pulaski store.

Prior to the Company's announcement about the store closings, community leaders reached out to city Aldermen for their support. Alderman Ted Thomas (15th Ward) vowed to stand with community efforts to see justice in the workplace. He contacted Nash Finch to arrange a meeting to discuss the community's concerns but his calls were met with silence.

"Our community must continue to speak out against corporate greed in order to protect ourselves and our families from mistreatment and exploitation," stated Carlos Arango, Executive Director, Casa Aztlán.

"Our responsibility to demand positive employment and corporate practices from the businesses in Chicago does not end once Avanza closes. It is critical that we require other corporations, like Wal-Mart, to make a commitment to Chicago residents that will protect workers and small businesses before they are allowed to
open their doors. This must be done to guarantee that workers and consumers are treated with dignity and respect. We will remain vigilant about protecting our communities against all predatory employers."


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Alianza Institute; Centro Comunitario Juan Diego; Illinois Coalition for Immigrant and Refugee Rights; Generation Y/Southwest Youth Collaborative; United Network for Immigrant and Refugee Rights; Chicago Federation of Labor, AFL-CIO Community Services; Southwest Organizing Project; Greater Southwest Development Corporation; Local 881 of the United Food and Commercial Workers Union; Telpochcali Community Education Project; Centro Sin Fronteras; Latino Organization of the Southwest; Casa Aztlán

[Editor's note: the story below was published on May 17 in the Denver Business Journal.]

Plug pulled on Avanza chain

Nash Finch Co.'s two-year experiment in trying to reach Hispanic shoppers has come to an end. The Minneapolis company will close its Avanza chain of stores, most of which are in Colorado.

Nash Finch (Nasdaq: NAFC) also owns the EconoFoods and Buy n Save stores.

The company opened six Avanza stores since 2002, with the idea of adding even more in communities with a sufficient number of Hispanics. Four of the stores are in Colorado; the others, in Chicago.

The company said it decided to close 21 of its stores, including some EconoFoods locations, which brought in about 15 percent of its annualized retail sales, because they were "underperforming." Closing the stores should help Nash Finch save about $16 million a year.

Nash Finch will take a $42 million charge in the second quarter tied to the closing of the 21 stores. The company expects to shut down the stores by the end of the second quarter.

Denver Business Journal
October 30, 2003

Nash Finch opens second Avanza store in Chicago

Nash Finch Co., has opened a second store in Chicago using its Avanza concept aimed at the Hispanic market.

The first Avanza store in Chicago opened in September.

Edina-based Nash Finch started working on the concept in 2001. It first opened stores in Colorado and now has four stores in the Denver market.

Nash Finch, a food retail and distribution company, said its market research identified that Chicago's Hispanic population of more than 750,000 provided a good place to expand its specialty stores.

Hispanics are the largest ethnic group in the United States at an estimated 38.8 million according to the latest U.S. Census Bureau numbers, which date from July of last year.

Shares of Nash Finch on the Nasdaq National Market closed up 20 cents, or 0.2 percent, at $16.30 Thursday.
 
 

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