Is UNFI Considering a Sale?

Although the purchase was intended to boost UNFI’s market position, it instead added complications, including inventory and delivery issues, as well as poor financial performance. This has led to speculation that UNFI might be considering a sale.

Despite these rumors, UNFI CEO Sandy Douglas has firmly denied that the company is planning to sell. He attributes some of the difficulties to the timing of the SuperValu acquisition, just before the COVID-19 pandemic, which he argues affected the industry as a whole. However, multiple unnamed sources suggest that UNFI may be considering selling, and consulting firms have even reportedly shown interest in gathering information about the company, potentially to help with a sale.

UNFI’s financial performance has been inconsistent, with stock prices fluctuating significantly after the SuperValu acquisition. This uncertainty, coupled with issues like poor on-time performance and declining customer trust, has raised questions about the company’s future. While Douglas remains optimistic about a recovery, citing a recent three-year growth plan, market observers are left wondering whether the company will ultimately explore a sale or continue its efforts to recover and expand.

This situation is further complicated by the recent hiring of Giorgio Tarditi, a seasoned mergers and acquisitions expert, as UNFI’s new president and CFO. Many see this move as a potential signal of a significant restructuring or even a sale in the future.