This tells you a lot about the wobbly performance of the high-end supermarket chain. An affiliate of L.A.-based Leonard Green Partners has bought a 17 percent stake in the Texas-based company for $425 million. Whole Foods CEO John Mackey says the infusion will provide "the financial flexibility to manage through these difficult economic times while continuing to prudently invest in our long-term growth." Translation: We need da bread. News of the purchase came as Whole Foods was reporting its eighth consecutive drop in quarterly profits. The problem, of course, is that recessions will bring out the frugality in shoppers - so much so that Whole Foods has stooped to promoting lower-priced items (would you believe wine for $3.99 a bottle?). That's quite a marketing change for a retailer that has been dubbed "Whole Paycheck."
Leonard Green is no stranger to retail investments. They include Neiman Marcus, Petco, Rite Aid, the Container Store, David's Bridal and Claim Jumper Restaurants. Whole Foods stock jumped more than 20 percent on the Leonard Green news, despite the big market decline - and despite the company lowering its 2009 sales forecast. (Reuters)