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food peddler

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Reply with quote  #1 
USF is in deep SH.T

The 2nd largest customer of USF may be going to SYSCO. Either usf will have to drop the margins or may not even have the choice of keeping the business. The national acct folks better start looking for jobs. ARA purchased AVendra to improve the bottom line, and buying from USF won't help ARA do that. 

Time to head to Sysco? Time for USF to sell a losing deal. This may lead usf to sell to Sysco at a bargain price. The government with Trump in charge will surely get it thru this time. Then the sales man can all go on salary as USF has planned. PAY CUTS ARE COMING.

How about the Union drivers in Philly that may lose 15 % of the work force from Avendra stops. The new contract is up in Bridgeport in Feb. Sales people are leaving, managers are leaving and so is our sales manager in the near future. He just does know he is on his way out!

THE END IS IN SIGHT FOR USF
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commoditiesguy

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Reply with quote  #2 
If you look carefully, you can see Pietro tossing some poor 3rd class passenger (DSM) out of a lifeboat so that he can grab his own seat....




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Sidney

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Reply with quote  #3 
Well all those TM's that jumped to National Accounts for safety now find a less secure future with US. I wonder if there is a app in Salesforce for "Get the hell out now"
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Reply with quote  #4 

Embroiled Avendra Posts $5 Million Profit

Avendra is posting a profit, but lawsuits alleging wrongdoing are spoiling the good times.

Friday, May 09, 2003
Kristin Amarante
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Embroiled Avendra Posts $5 Million Profit

 

NEW YORK -- Just two weeks after Host Marriott announced a wider quarterly loss than expected pushing back a full-fledged lodging industry recovery until 2004, sister company Marriott International revealed that Avendra, a supply company controlled by Marriott, posted a $5 million profit in 2002.

The figure was disclosed in a letter Marriott sent to the company’s managed hotels on behalf of its separate owners, reported the New York Times. Reportedly, Avendra bought goods and services worth almost $2 billion last year for more than 4,000 hotels, golf and country clubs and airport concession operations, including $850 million for Marriott run properties.

The controversial relationship between Avendra and Marriott has drawn a great deal of negative attention since last spring, when four hotel owners filed suit against Marriott International, accusing it of a wide range of allegations from breach of fiduciary duty to violation of the RICO Act.

Through contracts Marriott has with 700 hotels, Marriott uses Avendra to buy supplies, but is not required to disclose the actual prices that Avendra negotiates with the vendors.

Filing suit were CTF Holdings with respect to a 20-hotel portfolio; In Town Limited Partnerships with respect to the Charleston Marriott Town Center Hotel; the Flately Family Trust, with respect to the Boston Marriott Quincy Hotel; and Strategic Capital with respect to The Ritz Carlton Laguna Niguel, Marriott’s Rancho Las Palmas and the Renaissance Beverly Hills. The companies allege Marriott took rebates (the suit claims these are kickbacks) from vendors and did not disclose or account for such amounts as required by the management agreements.

In the past, Marriott has called the assertions “false,” claiming they were just a means for owners to renegotiate their management agreements. Avendra and Marriott maintain that they are allowed under specific contracts with certain hotels to keep types of rebates.

In Marriott’s letter mailed last week, it notes in 2002 Avendra kept $15 million in rebates from its purchases for Marriott-managed hotels. The figure represents about 2.1% of the volume of goods it bought for Marriott, according to the New York Times. Avendra also reportedly returned $12.6 million in rebates to hotels managed by Marriott, including $1.6 million generated through Marriott’s P-card credit card program, which expedites payment flow and rebates through vendors and Marriott. The letter also said that Avendra had given hotels an additional $900,000 in rebates last June.

Marriott disclosed that it had increased its ownership stake in Avendra, to slightly more than 50% from 49%, and reportedly did not pay for the additional stake, according to the New York Times.

In addition, Marriott’s letter stated that it had kept $1.5 million in late-arriving rebates last year related to purchasing by Marriott-franchised properties through Marketplace by Marriott, Marriott’s old internal purchasing arm that was dismantled with the development of Avendra. Last October, Marriott returned an additional $6 million to hotel owners in late-arriving rebates from that operation’s closing.

This past February, Marriott promised hotel owners that profits earned through Avendra would eventually be used to compensate for any fees the hotels might owe Marriott for doing business through Avendra, but that the offsets will become available only after Marriott recovered its investment of around $5 million in Avendra – it has not done so yet, according to the New York Times.

Hotel Interactive® contacted both Marriot and Avendra, but they were unavailable for comment

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broadliner

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Reply with quote  #5 
The one good thing about losing avendra will be the removal of 400 case orders that back up the routes and make profitable orders late.
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Sidney

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Reply with quote  #6 
and 1000's of slots, US Foods has focused on street business for the last couple of years, this may afford them the opportunity to really capitalize on that front
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