Federal Register / Vol. 62, No. 184 / Tuesday, September 23, 1997 / Notices 49687

FCC’s duplicating contractor, Room 159, 6th St. and Pa. Ave. NW, II. Description of the Parties and the International Transcription Services, Washington, DC 20580. Acquisition Inc. (ITS, Inc.) at (202) 857–3800 or fax FOR FURTHER INFORMATION CONTACT: Jitney-Jungle, which is headquartered (202) 857–3805 and 857–3184. These George S. Cary, Federal Trade in Jackson, Mississippi, is one of the copies are available in paper format and Commission, H–374, 6th St. and leading supermarket chains in the alternative media which includes, large Pennsylvania Ave. NW, Washington, DC Southeast. Jitney-Jungle operates 105 print/type; digital disk; and audio tape. 20580, (202) 326–3741. Phillip L. supermarkets in the states of Alabama, ITS may be reached by e-mail: Broyles, Federal Trade Commission, S– _ Arkansas, Louisiana, Mississippi, its [email protected]. Their Internet 2105, 6th St. and Pennsylvania Ave. Florida, and Tennessee. The company is address is http://www.itsi.com. NW, Washington, DC 20580. (202) 326– the largest supermarket operator in This meeting can be viewed over 2805. Mississippi with 72 stores. The George Mason University’s Capitol SUPPLEMENTARY INFORMATION: Pursuant company operates under three formats: Connection. For information on this to section 6(f) of the Federal Trade (1) 78 conventional supermarkets under service call (703) 993–3100. The audio Commission Act, 38 Stat. 721, 15 U.S.C. the ‘‘Jitney-Jungle’’ trade name; (2) 23 portion of the meeting will be broadcast 46, and § 2.34 of the Commission’s rules discount supermarkets under the ‘‘Sack live on the Internet via the FCC’s of practice (16 CFR 2.34), notice is and Save,’’ ‘‘Mega Market,’’ and ‘‘Mega Internet audio broadcast page at . The meeting consent agreement containing a consent premium supermarkets under the can also be heard via telephone, for a order to cease and desist, having been ‘‘Jitney Premier’’ trade name. Jitney- fee, from National Narrowcast Network, filed with and accepted, subject to final Jungle has sales of approximately $1.13 telephone (202) 966–2211 or fax (202) approval, by the Commission, has been billion at its supermarkets, and total 966–1770; and from Conference Call placed on the public record for a period sales of $1.28 billion, in its 1997 fiscal USA (available only outside the of sixty (60) days. The following year. The ultimate parent entity of Washington, DC metropolitan area), Analysis to Aid Public Comment Jitney-Jungle is Bruckmann, which telephone 1–800–962–0044. Audio and describes the terms of the consent owns a majority of the voting securities video tapes of this meeting can be agreement, and the allegations in the of Jitney-Jungle. obtained from the Office of Public accompanying complaint. An electronic Delchamps, which is headquartered Affairs, Television Staff, telephone (202) copy of the full text of the consent in Mobile, Alabama, is another leading 418–0460, or TTY (202) 418–1398; fax agreement package can be obtained from supermarket chain in the Southeast. numbers (202) 418–2809 or (202) 418– the Commission Actions section of the Delchamps operates a total of 118 7286. FTC Home Page (for September 12, conventional supermarkets under the Dated September 18, 1997. 1997), on the World Wide Web, at ‘‘Delchamps’’ trade name. Delchamps’ ‘‘http://www.ftc.gov/os/actions97.htm.’’ supermarkets are located in Alabama, Federal Communications Commission. A paper copy can be obtained from the Shirley Suggs, Florida, Louisiana, and Mississippi. In FTC Public Reference Room, Room H– addition, the company operates ten Chief, Publications Branch. 130, Sixth Street and Pennsylvania liquor stores in the state of Florida. [FR Doc. 97–25325 Filed 9-19-97; 2:54 pm] Avenue, NW, Washington, DC 20580, Louisiana, and Mississippi. In addition, BILLING CODE 6712±01±F either in person or by calling (202) 326– the company operates ten liquor stores 3627. Public comment is invited. Such in the state of Florida. Delchamps had comments or views will be considered FEDERAL TRADE COMMISSION sales of approximately $1.08 billion at by the Commission and will be available its supermarkets, and total sales of $1.1 for inspection and copying at its [File No. 971±0093] billion, in its 1997 fiscal year. principal office in accordance with On or about July 8, 1997, Jitney-Jungle Jitney-Jungle Stores of America, Inc.; § 4.9(b)(6)(ii) of the Commission’s rules and Delta, a wholly-owned subsidiary of Bruckmann, Rosser, Sherrill & Co., of practice (16 CFR 4.9(b)(6)(ii)). Jitney-Jungle, entered into a cash tender L.P.; Delta Acquisition Corp.; Analysis of Proposed Consent Order To offer agreement with Delchamps to Delchamps, Inc.; Analysis To Aid Aid Public Comment acquire all of the outstanding common Public Comment stock of Delchamps for $30 per share. I. Introduction The total value of the proposed AGENCY: Federal Trade Commission. The Federal Trade Commission acquisition is approximately $228 ACTION: Proposed consent agreement. (‘‘Commission’’) has accepted for public million. comment from Jitney-Jungle Stores of SUMMARY: The consent agreement in this America, Inc. (‘‘Jitney-Jungle’’), III. The Complaint matter settles alleged violations of Bruckmann, Rosser, Sherrill & Co., L.P. The draft complaint accompanying federal law prohibiting unfair or (‘‘Bruckmann’’), Delta Acquisition the proposed consent order alleges that deceptive acts or practices or unfair Corporation (‘‘Delta’’), and Delchamps, the acquisition, as well as the agreement methods of competition. The attached Inc. (‘‘Delchamps’’) (collectively ‘‘the to enter into the acquisition, would Analysis to Aid Public Comment proposed Respondents’’) an Agreement substantially lessen competition in describes both the allegations in the Containing Consent Order (‘‘the violation of section 7 of the Clayton Act, draft complaint that accompanies the proposed consent order’’). Bruckmann as amended, 15 U.S.C. 18, and section consent agreement and the terms of the owns a majority of the voting securities 5 of the FTC Act, as amended, 15 U.S.C. consent order—embodied in the consent of Jitney-Jungle, and Delta is wholly- 45. agreement—that would settle these owned subsidiary of Jitney-Jungle. The According to the draft complaint, the allegations. proposed consent order is designed to relevant line of commerce (i.e., the DATES: Comments must be received on remedy likely anticompetitive effects product market) is the retail sale of food or before November 24, 1997. arising from Jitney-Jungle and Delta’s and grocery items in supermarkets, and ADDRESSES: Comments should be proposed acquisition of the outstanding Jitney-Jungle and Delchamps are direct directed to: FTC/Office of the Secretary, shares of Delchamps. competitors. Stores other than 49688 Federal Register / Vol. 62, No. 184 / Tuesday, September 23, 1997 / Notices supermarkets are not in the relevant Springs, and narrower markets comment, whichever is later, or to product market because they do not contained therein, including Waveland/ another acquirer that receives the prior have a significant price-constraining Bay Saint Louis, Gulfport, north approval of the Commission within effect on food and grocery products sold Gulfport, and Biloxi/D’Iberville. three months after the proposed consent at supermarkets. Most consumers b. Pensacola, Florida, and narrower order becomes final. A sale to Supervalu shopping for food and grocery products markets contained therein; by the proposed Respondents must be in at supermarkets are not likely to shop c. Hattiesburg, Mississippi, and the accordance with the agreement between elsewhere in response to a small price area immediately west of Hattiesburg; Supervalu and Jitney-Jungle dated increase by supermarkets. In addition, and August 29, 1997, and all subsequent supermarkets do not regularly price- d. Vicksburg, Mississippi. amendments thereto. check food and grocery products sold at According to the draft compliant, If the proposed Respondents divest other types of stores and do not these markets are highly concentrated, the ten listed supermarkets to Supervalu typically change their food and grocery whether measured by the Herfindahl- within three months of the date on prices in response to prices at other Hirschman Index (commonly referred to which the proposed consent order types of stores. as ‘‘HHI’’) or by two-firm and four-firm becomes final, Supervalu may sell any Food stores other than supermarkets, concentration ratios. The HHI is a of these supermarkets to either R&M such as convenience stores, ‘‘mom & measurement of market concentration Foods, Inc. (‘‘R&M Foods’’) or Southeast pop’’ stores, and specialty food stores calculated by summing the squares of Foods, Inc. (‘‘Southeast Foods’’). R&M (e.g., seafood markets, bakeries, etc.) are the individual market shares of all the Foods currently operates 18 not in the relevant product market participants. The acquisition would supermarkets, and Southeast Foods because they typically offer far fewer significantly increase the HHIs in each currently operates 21 supermarkets. If items than the average supermarket and of the already highly concentrated Supervalu does not sell the ten listed charge higher prices for many of the markets. supermarkets to either R&M Foods or same or similar items. Other types of According to the draft complaint, Southeast Foods within three months of stores that sell some food and grocery entry into the retail sale of food and the date on which the proposed consent products, such as large drug stores and grocery products in supermarkets in the order becomes final, Supervalu cannot mass merchandisers, offer only a limited relevant sections of the country is sell the ten listed supermarkets to number of items sold in the typical difficult and would not be timely, anyone without the prior approval of supermarket. The small number of likely, or sufficient to prevent the Commission. membership club stores in the relevant anticompetitive effects in the relevant Five of the ten supermarkets to be market, which offer only a limited geographic markets. divested are located in the Gulfport- number of food and grocery products Jitney-Jungle and Delta’s acquisition Biloxi area; two are located in primarily in bulk sizes, do not have a of Delchamps may reduce competition Pensacola, Florida; two are located in significant effect on market in these markets by eliminating the Hattiesburg, Mississippi; and one is concentration. direct competition between Jitney- located in Vicksburg, Mississippi. If the Military commissaries are also not in Jungle and Delchamps, by increasing the proposed Respondents fail to satisfy any the relevant product market. Military likelihood that Jitney-Jungle will of the divestiture provisions, the commissaries, which are not open to the unilaterally exercise market power, or Commission may appoint a trustee to public, operate as supermarkets for by increasing the likelihood of, or divest supermarkets to satisfy the terms eligible military personnel and their facilitating, collusion or coordinated of the proposed consent order. The ten families with retail prices substantially interaction among the remaining supermarkets to be divested are: below the average retail prices at competitors. Each of these effects 1. The following supermarket located supermarkets for the same or similar increases the likelihood that the prices in Hancock County, Mississippi: items in the Gulfport-Biloxi area in of food, groceries or services will a. Delchamps store no. 64 operating Mississippi, and in Pensacola, Florida. increase, and the quality and selection under the ‘‘Delchamps’’ trade name, Retail prices at military commissaries of food, groceries or services will which is located at Choctaw Plaza are not advertised and are uniform decrease, in the relevant sections of the Shopping Center, 318 Highway 90, throughout the country based on the country. Waveland, MS 39576; actual cost of the item plus a nationwide IV. Terms of the Proposed Consent 2. The following supermarkets located uniform surcharge determined by rules Order in Harrison County, Mississippi: established by the Secretary of Defense. a. Jitney-Jungle store no. 33 operating Retail prices at military commissaries The proposed consent order attempts under the ‘‘Jitney-Jungle’’ trade name, are not based on local market to remedy the Commission’s which is located at 917 Division St., conditions. Supermarkets do not price- competitive concerns about the Biloxi, MS 39530; check food and grocery products sold at acquisition. Under the terms of the b. Jitney-Jungle store no. 32 operating military commissaries and do not base proposed consent order, the proposed under the ‘‘Jitney-Jungle’’ trade name, their prices on the retail prices at the Respondents must divest the ten which is located at 1225 Pass Road, military commissaries. supermarkets listed below—five Jitney- Gulfport, MS 39501; According to the draft complaint, the Jungle owned and operated stores (four c. Jitney-Jungle store no. 42 operating relevant sections of the country (i.e., the of which are ‘‘Jitney-Jungle’’ stores and under the ‘‘Jitney-Jungle’’ trade name, geographic markets) in which to analyze one is a ‘‘Sack & Save’’ store) and five which is located at Handsboro Square the acquisition of Delchamps by Jitney Delchamps—to Supervalu Holdings, Shopping Center, 1345 East Pass Road, and Delta are the following: Inc., a wholly-owned subsidiary of Gulfport, MS 39501; and a. The Gulfport-Biloxi area of Supervalu, Inc. (collectively d. Delchamps store no. 364 operating Mississippi, which consists of the parts ‘‘Supervalu’’), within either one month under the ‘‘Delchamps’’ trade name, of Hancock, Harrison, and Jackson after the date on which the proposed which is located at 11240-A Highway 49 counties that include Waveland, Bay consent order becomes final, or five North, Gulfport, MS 39503; Saint Louis, Pass Christian, Long Beach, months after the acceptance of the 3. The following supermarkets located Gulfport, Biloxi, D’Iberville, and Ocean proposed consent order for public in Escambia County, Florida: Federal Register / Vol. 62, No. 184 / Tuesday, September 23, 1997 / Notices 49689

a. Jitney-Jungle store no. 54 operating assignment, or change in occupancy, terms of the agreement and proposed under the ‘‘Jitney-Jungle’’ trade name, except in the ordinary course of consent order in any way. which is located at 4081-A East Olive business, or except as part of any Donald S. Clark, Road, Pensacola, FL 32514. negotiation for a sale, sublease, Secretary. b. Jitney-Jungle store no. 52 operating assignment, or change in occupancy of [FR Doc. 97–25185 Filed 9–22–97; 8:45 am] under the ‘‘Sack & Save’’ trade name, such supermarket. BILLING CODE 6750±01±M which is located at Brent Oaks Mall, The proposed Respondents are East Brent Lane, Pensacola, FL 32503. required to provide to the Commission 4. The following supermarket located a report of compliance with the GENERAL SERVICES in Lamar County, Mississippi: ADMINISTRATION a. Delchamps store no. 67 operating proposed consent order within sixty under the ‘‘Delchamps’’ trade name, (60) days following the date the Privacy Act of 1974; System of which is located at Oak Grove Plaza proposed consent order becomes final, Records Shopping Center, 4600 West Hardy every sixty (60) days thereafter until the AGENCY: Street, Hattiesburg, MS 39401. divestitures are completed, and Notice of a revised record system subject to the Privacy Act of 5. The following supermarket located annually for a period of ten years. 1994. in Forrest County, Mississippi: The proposed Respondents also a. Delchamps store no. 9 operating entered into an Asset Maintenance SUMMARY: This document gives notice, under the ‘‘Delchamps’’ trade name, Agreement. Under the terms of the Asset under the Privacy Act of 1994, 5 U.S.C. which is located at 601 Broadway Maintenance Agreement, from the time 552a, of GSA’s proposal to revise a Street, Hattiesburg, MS 39401. Jitney-Jungle acquires the outstanding record system maintained by GSA. 6. The following supermarket located stock of Delchamps until the GSA proposes to revise the record in Warren County, Mississippi: divestitures have been completed, the system, Payroll Information Processing a. Delchamps store no. 115 operating proposed Respondents must maintain System, PPFM–9, to reflect that GSA under the ‘‘Delchamps’’ trade name, their viability, competitiveness and plans to disclose data to: (1) The Office which is located at Delchamps Plaza, marketability, and must not cause their of Child Support Enforcement, 3046–D Indiana Avenue, Vicksburg, MS wasting or deterioration, and cannot Administration for Children and 39180. sell, transfer, or otherwise impair their Families, Department of Health and For a period of ten years from the date marketability or viability. The Asset Human Services Federal Parent Locator the proposed consent order becomes Maintenance Agreement specifies these System (FPLS) and Federal Tax Offset final, the proposed Respondents are obligations in detail. System for use in locating individuals prohibited from acquiring, without prior and identifying their income sources to notice to the Commission, supermarket V. Opportunity for Public Comment establish paternity, establish and modify assets located in, or any interest (such orders of support and for enforcement The proposed consent order has been as stock) in any entity that owns or action; (2) the Social Security operates a supermarket located in placed on the public record for sixty Administration for verifying social Hancock, Harrison, Jackson, Lamar, (60) days for receipt of comments by security numbers in connection with the Forrest, and Warren counties in interested persons. Comments received operation of the FPLS by the Office of Mississippi, and Escambia County, during this period will become part of Child Support Enforcement; and (3) the Florida. This provision does not prevent the public record. After sixty days, the Department of Treasury for purposes of the proposed Respondents from Commission will again review the administering the Earned Income Tax constructing new supermarket facilities agreement and the comments received Credit Program (Section 32, Internal on their own; nor does it prevent the and will decide whether it should Revenue Code of 1986) and verifying a proposed Respondents from leasing withdraw from the agreement or make claim with respect to employment in a facilities not operated as supermarkets final the agreement’s proposed consent tax return. A revised system report has within the previous six months. order. been filed with the Speaker of the For a period of ten years, the By accepting the proposed consent House, the President of the Senate, and proposed consent order also prohibits the Office of Management and Budget. the proposed Respondents from entering order subject to final approval, the DATES: And interested party may submit into or enforcing any agreement that Commission anticipates that the written comments concerning the restricts the ability of any person that competitive problems alleged in the revision. Comments must be received on acquires any supermarket, any leasehold complaint will be resolved. The purpose or before the 30th day after GSA interest in any supermarket, or any of this analysis is to invite public publishes this notice. The system interest in any retail location used as a comment on the proposed consent becomes effective without further notice supermarket on or after July 1, 1997, to order, including the proposed sale of on October 1, 1997. Unless comments operate a supermarket at that site if such supermarkets to Supervalu, R&M Foods, received would warrant a contrary supermarket was formerly owned or and Southeast Foods, to aid the decision. operated by the proposed Respondents Commission in its determination of in Hancock, Harrison, Jackson, Lamar, whether it should make final the ADDRESES: Address comments to Denise Forrest, and Warren counties in proposed consent order contained in the Johnson, Privacy Act Officer, General Mississippi, and Escambia County, agreement. This analysis is not intended Services Administration, 1800 F Street, Florida. In addition, the proposed to constitute an official interpretation of NW, (CAI), Washington, DC 20405. Respondents may not remove any the agreement and proposed consent FOR FURTHER INFORMATION CONTACT: equipment from a supermarket they order, nor is it intended to modify the Denise W. Johnson, GSA Privacy Act own or operate prior to a sale, sublease, Officer (202) 501–1659.