PARSIPPANY, NJ - The parent company of Kings Food Markets and Balducci’s Food Lover’s Market recently filed for Chapter 11 bankruptcy to facilitate a $75 million sale. The company interested in purchasing the grocery banners is TLI Bedrock.
"We are pleased to be moving forward with a sale so we can position Kings and Balducci's for even greater long-term success. During this COVID crisis, our Associates and communities have demonstrated not only the viability but absolute necessity of our markets in their communities. Our sales and service have never been stronger; we are confident we will emerge from this process without missing a beat, well-positioned for future stability and success," said Judith Spires, CEO of KB US Holdings.
According to a press release, KB has obtained a commitment for approximately $20 million in debtor-in-possession ("DIP") financing from its existing secured lender. Upon court approval, the new financing, combined with cash generated from the company's ongoing operations, will be used to support the business throughout the sale process.
The parent company noted that it has sufficient liquidity to meet its go-forward business obligations and will operate with business as usual. This means that its business partners will be paid for goods and services provided on or after the Chapter 11 filing date.
As part of the filing, KB has filed a number of customary "first day" motions seeking authorization to maintain its operations during the court-supervised process, including authority to continue payment of employee wages and benefits, as well as post-petition obligations to its vendor community.
Part of the sale process is that higher and better bids will be solicited following the former approval of the U.S. Bankruptcy Code.
How does this sale better positions both banners for retail success? AndNowUKnow will continue to follow the news.
