on with "continues to stock scores of the dreary no-frills offerings customers have shunned for years." Merrill Lynch fired Chief Executive Kenneth Peskin, replacing him with Jack Futterman. The only bright spot for the parent company was its 66-unit Purity Supreme division, consisting of Massachusetts grocery and convenience store chains acquired in 1984. This division was sold in 1991 for about $265 million. (Supermarkets General's department stores had been sold in 1986.) Supermarkets General lost money in each fiscal year from 1988 to 1993, and sales volume annually during FY 1989 to 1993. In fiscal 1993 it lost a record $617 million on sales of $4.34 billion, mainly reflecting a $600 million writedown of goodwill (the premium paid in excess of assets) in the 1987 buyout. The company's interest payments, averaging between $160 million and $180 million yearly on its debt, were hampering its efforts to modernize its stores and keep pace with competitors. Pathmark now had 146 supermarkets, 33 freestanding drug stores, and 7 distribution-processing facilities. 1990s In March 1993, Supermarkets General wanted to take Pathmark public, but backed off due to insufficient investor interest. That October, in a corporate reorganization, Supermarkets General Corp., a subsidiary of Supermarkets General Holdings Corp., changed its name to Pathmark Stores, Inc.; in essence, it recapitalized $1.3 billion in outstanding debt. Pathmark lowered its interest costs, from 13 percent to 9 percent of revenue, increasing cash flow, which allowed Pathmark to increase capital investment. Rickel was spun off; it was sold in 1994. Pathmark now was betting on stores larger in size than its Super Centers. The Pathmark 2000 format, introduced in 1992, consisted of units up to . In 1995 there were 27 such stores, including some remodeled Pathmarks. The stores emphasized perishables, including produce, seafood, baked goods, flowers, plus health and beauty aids, in hoping to compete with drug store and discount competitors. These goods had higher profit margins than packaged groceries. Pathmark 2000 stores also featured a customer service desk for product returns, video rentals, film processing, and UPS delivery; and restrooms with tables for changing diapers. There were 44 such stores in May 1996, with 53 in February 1997. In 1994, Pathmark added to its private-label products, introducing an upscale line, Pathmark Preferred, to its generic and mid-tier brands. Pathmark's over 3,300 private-label items were accounting for about 24 percent of its sales. In late 1995, Pathmark launched Chef's