Auction of Marsh Supermarket Assets Begins With "Numerous" Bids
INDIANAPOLIS, IN – After filing for Chapter 11 bankruptcy earlier this year, Marsh Supermarkets has begun to auction off its assets, fielding “numerous” bids for the Midwest banner's remaining locations.
“Qualifying bids have been received from numerous bidders," said Thomas Mulligan, an Senior Executive from Sitrick and Company, a firm hired by the retailer to respond to inquiries on store closures and asset sales. "The company, its advisors, and the creditors committee are evaluating the bids."
According to local ABC affiliate RTV6, the auction officially began Monday June 12, 2017 at 10 a.m. The auction includes only bidders who are considered to be qualified to operate the assets of the company.
The embattled supermarket chain filed for bankruptcy earlier this year after attempts at a sale were unsuccessful. The company has closed more than twenty stores throughout the first half of this year, bringing the chains store count to 47. The company recently petitioned—and was approved for—an expedited bankruptcy sale plan in Delaware courts in order to court a stalking horse bidder. RTV6 reports that, so far, roughly 3,700 Marsh employees have lost their jobs due to store closures, and were the remaining stores to close, an additional 2,788 employees would be laid off.
"While today's decision was extremely difficult, we believe this action is necessary to preserve the value of the business as we seek a sale," said Chief Executive Officer Tom O'Boyle on the occasion of the company’s decision to file for bankruptcy this May. "After reviewing every alternative, we concluded that Chapter 11 clearly provides the most effective and efficient means to ensure the best recovery for the Company's stakeholders."
AndNowUKnow will continue to report on the situation as news is forthcoming.