Strome Business Minute With Dr. Jeff Tanner

Performance Food Group, or PFG, the Goochland based food distributor, announced it is selling thirteen point five million shares of common stock this week, two million more shares than originally planned. While this isn’t the best time to sell stock, the company is seeking funds for working capital, which really means they’re using it to cover operating expenses. The company primarily serves restaurants, hospitals, universities, and other institutions, which is the hardest hit segment of the food business, so they’ve been signing up grocery stores too. PFG sales declined fifty percent the last two weeks of March and the company expects continued revenue declines until the economy reopens. Stock that is being sold was purchased by the firm as recently as last month. Share prices have fallen fifty percent in the past year. To learn more, visit odu.edu/business. This Strome Business Minute is presented by the Strome College of Business at Old Dominion University.