MINNEAPOLIS — Supervalu on Wednesday said its board of directors would seek strategic alternatives including the sale of all or parts of the company while announcing sweeping plans to slash expenses and capital spending after first quarter financial results fell well below expectations.The retailer said it would reduce fiscal 2013 capital expenditures from earlier estimates of $675 million to $450 to $500 million and seek additional operating expense cuts of $250 million over the next two years. In addition, the company said it had suspeded its dividend, reached an agreement on a real-estate backed loan to replace its current credit facility, and was withdrawing sales and earnings guidance.Supervalu shares were trading down by more than 25% in after-hours trading. In a message to employees Wednesday, Craig Herkert, chief executive officer, said the company “has to consider all options to increase the overall value of the company. Our review of strategic alternatives will be broad-based and include looking at the sale or other disposition of all or part of the company,” he said.Herkert said the moves would help Supervalu accelerate a program of price investments begun at its Jewel banner in Chicago. “Our target is to have half of our network priced appropriately to the competition by March 2013,” Herkert said. “All banners will see sales-driving investments this year and will be executing the fair price plus promotion strategy by the end of fiscal 2014.”
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