Shaw's waves white flag in Lebanon

In a letter to the editor of the Valley News of Lebanon, Paul Gannon, Chief Executive Officer of Shaw's Supermarkets, said "hopefully in the very near future, there will be a retail food operation in the former Butson's location." The letter followed a week when the mayor and city council joined a boycott of Shaw's other stores, residents staged protests over the company's decision to close Butson's downtown store, and a state senator began exploring antitrust action and eminent domain proceedings against Shaw's.

"This is good news for Lebanon," said Laconia Mayor Mark Fraser yesterday, "and may promise good news for us too. Certainly this is good news in terms of our future conversations."

Fraser spoke with Gannon by telephone on Wednesday, the day Shaw's made its announcement in Lebanon. Fraser said Gannon told him that until Shaw's acquired the lease on the Butson's property detailed discussions about the future of the site would be premature. At the same time, Fraser said he sensed that the outcry in Lebanon "wasn't lost on him (Gannon)."

Terry Donilon, spokesman for Shaw's said yesterday "our feeling is that we can come to some kind of resolution on Laconia. We're aiming for a month, but it may take longer."

A "resolution," he said, "could or could not mean a grocery store." Donilon insisted "everything is on the table, we haven't ruled finding someone who will run a grocery store at the site in or out," adding that "it is still early in the process." He said that his firm was actively seeking a solution that is "right for the town and right for the company."

In his letter to the Valley News, copies of which were distributed to protesters at the Shaw's stores in West Lebanon, Gannon said "Shaw's cannot finalize any transactions until we assume responsibility for this property. We certainly cannot disclose our plans or the parties involved until a purchase and sales agreement has been signed."

He also told the paper that Shaw's is engaged in ongoing discussions with "interested parties," adding that "they have visited the stores. That's an important step and we're through that hurdle."