Whole Foods Market, Inc. (NASDAQ:WFM) could be on the verge of being sold.
A report by Bloomberg claims that the chain grocer’s shareholder met with activist funds over a potential sale of the company due to the shareholder losing patience with the direction the company is taking. A spokesperson for the company said it has a “strong and open relationship” with its shareholders.
The spokesperson added that the company is focused on pursuing the right strategies to put the company in a place to perform well and offer a substantial return to its shareholders going forward.
The shareholder is one of Whole Foods’ 10 biggest and he or she decided not to be identified because the process is private. The company has poor inventory and vendor management, along with rising costs that have yet to make an impact with millennials.
The grocer has a market value of about $8.9 billion. Two days ago, Whole Foods announced that it would no longer have dual CEOs as John Mackey — who is a co-founder — will serve as the only CEO as of Dec. 31.
The company reported earnings on Nov. 2, topping estimates as it earned 28 cents per share, beating estimates on the bottom line by four cents. Additionally, revenue came in at $3.5 billion, topping the year-ago’s sales of $3.44 billion.
Sales growth for the next fiscal year will be between 3.5% to 4.5% and earnings will be at least $1.42 per share.
WFM stock is up 1.3% Friday.
