
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, March 31, 1993                   TAG: 9303310174
SECTION: CURRENT                    PAGE: NRV-2   EDITION: NEW RIVER VALLEY 
SOURCE: From staff reports
DATELINE: ROANOKE                                LENGTH: Medium

CENTER BANKRUPTCY BLAMED ON WADE'S BLOCKING HARRIS TEETER

A general partner in Blacksburg's Gables Shopping Center blamed the center's bankruptcy filing on a continuing effort by Wade's Supermarket to keep Harris Teeter out of the shopping center.

The center filed for bankruptcy protection in January.

At a hearing Tuesday, Gables Associates general partner Fred Myers said the immediate cause of the bankruptcy filing was a threatened foreclosure by Integon Insurance. But the dispute over Harris Teeter, which is unresolved, was the reason behind the center's financial problems, he said.

Although Wade's lost a court fight over Harris Teeter in the Virginia Supreme Court last summer, the Blacksburg-based grocery chain is still trying to stop the competitor from moving into Gables where Wade's operates a grocery store, Myers said.

James Douthat, Myers' attorney, said that as late as January Wade's attorney was still demanding blueprints for Harris Teeter and taking the position that the store cannot do anything that wasn't included in the case before the Supreme Court.

Scott Wade, vice president of operations for Wade's Foods, said there is another side to the story.

"We have all along felt that we defended our right to be there [in Gables] and our lease."

Douthat said that he is considering a bankruptcy court suit to stop Wade's efforts.

As a result of the dispute, Myers said, his partnership has lost $250,000 a year that Harris Teeter would have paid if it had located in Gables as it had planned. If Harris Teeter is able to move in, Myers said, it would boost the center's occupancy from 50 percent to close to 90 percent.

Wade's is in the process of opening a supermarket in the former Lowe's grocery location in a shopping center across the street from Gables and plans to move in by June 9, Wade said.

That store will be a full-service supermarket with a takeout cafe and greater variety in its perishable and dry groceries than the Wade's now in Gables, he said.

The chain, however, also plans to retain its store in Gables with a somewhat different format than its present operation.

"We are planning a limited assortment concept," said Wade.

by CNB