Apollo struggles to sell Hispanic grocer after US immigration raids hit sales - FT中文网
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Apollo struggles to sell Hispanic grocer after US immigration raids hit sales

Investors and analysts say customers’ fear of Trump’s deportation campaign weakened the private equity-owned chain
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{"text":[[{"start":10.45,"text":"Apollo is struggling to offload a Hispanic-focused grocery chain after US President Donald Trump’s mass deportation campaign dented the retailer’s business."}],[{"start":19.95,"text":"The private equity group has not been able to secure buyers for Heritage Grocers Group, which describes its business as “grocery chains that connect shoppers to Hispanic culinary traditions”, according to people familiar with the matter."}],[{"start":32.25,"text":"Heritage Grocers has reported consecutive quarters of reduced foot traffic and sales following a wave of raids through schools, homes and other public spaces aimed at deporting undocumented immigrants, which have sown fear in Hispanic communities."}],[{"start":47.2,"text":"“Their customer base is the Hispanic community, so [immigration raids] reduced the foot traffic and made customers change their behaviours in terms of where they shop,” said Viktoria Kovalenko, associate director at S&P Global. "}],[{"start":61.550000000000004,"text":"Apollo’s challenging exit from its investment underscores the direct threat that White House immigration policies pose to US businesses."}],[{"start":69.7,"text":"Chains such as Home Depot have also been caught up in Trump’s deportation drive as agents targeted undocumented people working in construction."}],[{"start":78.8,"text":"The mass deportation policy has led some customers to avoid shops and other public places where they think raids may occur — whether because they are undocumented or because they fear being targeted based on their race or appearance."}],[{"start":92.6,"text":"Prospective buyers of Heritage had balked in part because of the impact of immigration raids alongside deteriorating performance, intensifying supermarket competition and the dwindling purchasing power of low-income consumers, the people said."}],[{"start":105.89999999999999,"text":"Heritage’s publicly traded debt, an $895mn loan maturing in 2029, now trades at a deeply distressed level of 64 cents on the dollar."}],[{"start":118.14999999999999,"text":"“Once people get used to buying groceries online . . . because they don’t feel safe to go out, they might never return to the stores,” said a leveraged debt investor."}],[{"start":128.64999999999998,"text":"Apollo and adviser UBS have struggled to find buyers after aiming for a valuation of as much as $1.5bn for the grocery group when it launched the sale process last October."}],[{"start":139.64999999999998,"text":"Apollo chief executive Marc Rowan, nonetheless, has been a prominent Republican donor and a financial backer of Trump’s campaign for president. "}],[{"start":147.89999999999998,"text":"Rowan had also been accused by some investors of misusing Apollo’s resources to push personal political causes, including lobbying universities to adopt conservative policies, the FT previously reported. "}],[{"start":160.45,"text":"Heritage, which operates more than 100 stores in six US states under brands including Cardenas Markets and El Rancho Supermercado, generated about $150mn of earnings before interest, taxes, depreciation and amortisation last year. "}],[{"start":176.75,"text":"Its earnings were just $38mn in the fourth quarter — historically the industry’s peak season — according to people familiar with the company."}],[{"start":185.8,"text":"Same-store sales declined 4.1 per cent in the fourth quarter, S&P Global said in April as it downgraded Heritage deeper into junk territory and forecast continued declines in revenue and profit margin in 2026. "}],[{"start":199.65,"text":"The group has begun rolling out a digital initiative to allow customers to buy groceries online, but its effectiveness remained to be seen, Kovalenko said."}],[{"start":209.25,"text":"S&P Global also cited the cuts to government food aid, which it estimated accounts for about 10 to 13 per cent of Heritage’s revenues, above the industry’s average."}],[{"start":220.4,"text":"The group hired industry veteran David Hinojosa as chief executive in March, after operating without one for most of 2025. "}],[{"start":228.6,"text":"Apollo and UBS declined to comment. Heritage did not respond to a request for comment."}],[{"start":246.6,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1783040107_2277.mp3"}

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