Yucaipa Cos.

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The Yucaipa Companies, LLC is a Los Angeles-based holding company that was founded in 1986 by its billionaire chairman, Ronald Burkle. Yucaipa has a history of highly successful investment in supermarket and grocery chains beginning with Jurgensen's markets in 1986. After several standalone investments in the late 1980's, Yucaipa went on to lead the consolidation of West Coast retail that occurred during the 1990's.

It recently acquired stakes in Colorado-based Wild Oats Markets Inc., New Jersey-based Pathmark Stores Inc., and Minnesota-based Supervalu Inc., among others. Former US President Bill Clinton, a close friend of Burkle's, was an advisor to the company. Between 2003 and 2006, the Clintons' tax returns show total Yucaipa partnership income of $12.5 million. The 2007 summary provided by Hillary Clinton's Presidential campaign lists $2.75 million in partnership income.^[1]

Yucaipa has also shown a commitment to labor relations in many of its investments. Worker friendly practices and a willingness to engage with unions have proven to be effective tools in Yucaipa's investment strategy. Yucaipa has recently branched out into Employee Stock Ownership Plans (ESOP), with the creation of the American Working Capital group.[1]

[edit] Aloha Airlines purchase

In February 2006, Aloha Airlines was taken into private ownership by Yucaipa Companies. After 61 years in business, passenger operations were suddenly shut down on March 31, 2008. Rising fuel prices, new competition for interisland travel, a tightening credit market, and dwindling interest by investors in the airline industry, were all cited as contributing factors.

[edit] Investment History

1987: Food 4 Less grocery franchise of Kansas City acquired for $35 million
1989: Boys Markets acquired for $375 million
1991: Alpha Beta California supermarket chain acquired for $271 million
1994: Smitty's Phoenix-based supermarket operator acquired for $138 million
1994: Ralphs Grocery Co. Southern California supermarket chain acquired for $1.5 billion
- 1997: Ralphs/Food 4 Less merged with Fred Meyer
  - 1998: Fred Meyer sold to Kroger for $8 billion
1995: Dominick's Chicago grocery store chain acquired for $750 million
- 1998: Dominick's sold for $1.85 billion to Safeway
1999: invests $3 million in GameSpy, and $25 million in Cyrk, Inc.
2004: TDS Logistics purchased by Yucaipa (according to TDS Logistics site[2])
2005: Yucaipa becomes the majority shareholder in Aloha Airlines in a $100 million bid to purchase the airline.