Sara Lee to sell big chunk of assets

CHICAGO, Feb. 10 (UPI) -- Sara Lee Corp. of Chicago said Thursday it was selling assets worth about $1.85 billion, laying off workers and taking a charge against earnings.

Assets being sold include its European meat brands like Aoste and Imperial, its primarily non-U.S. direct selling business and such U.S. retail coffee brands as Chock full o'Nuts, Hills Bros, MJB and Chase & Sanborn. Sara Lee will keep its Senseo brand.

The divestitures, worth an estimated $1.85 billion, combined with the spinoff of its branded apparel unit and sale of its European apparel operations, represent $8.2 billion in sales or some 40 percent of annual revenues.

The exact size of the resulting earnings charge and number of dismissals was not disclosed.

Sara Lee also said it was reorganizing its remaining operations into three groups: North American retail, to include baked goods, packaged meats and Senseo coffee sales; North American food service, which includes the same items offered to businesses; and Sarah Lee International, which includes various operations outside of North America.

Also, Brenda Barnes, who has been president, replaces C. Steven McMillan as chief executive officer. McMillan will stay as chairman through the annual shareholders' meeting in October.