Lifeline for Metcash?
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The AFR reported that Metcash has signed a new long-term agreement with Foodland Supermarkets and multiple Foodland stores including Romeo's and Chapleys in South Australia. Foodland has committed to being supplied from Metcash's proposed new distribution centre in Adelaide for a decade. The deal is a lifeline for the grocery wholesale after supermarket chain Drakes announced earlier this year that it will leave the Metcash supply chain, which resulted in a $125 million off-market buyback, which reduced the business's issue capital by about 5.3%.