KB US Holdings, Inc, the owner of Kings Food Markets and Balducci's Food Lover's Market, has filed for bankruptcy, according to a press release.
The company and its subsidiaries have commenced voluntary Chapter 11 proceedings in the US Bankruptcy Court for the Southern District of New York.
It has accepted an offer from the investment firm TLI Bedrock to purchase the company for $75 million (€63.5 million).
'Greater Long-Term Success'
Judith Spires, CEO of KB US Holdings, Inc. said, ”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.”
KB has also obtained a commitment for approximately $20 million (€16.9 million) in debtor-in-possession ("DIP") financing from its existing secured lender.
The new financing, subject to court approval, combined with cash generated from the company's ongoing operations will be used to support the business throughout the sale process.
Sufficient Liquidity
KB has sufficient liquidity to meet its go-forward business obligations and will operate its business as usual and pay its business partners for goods and services provided on or after 23 August 2020, the Chapter 11 filing date, the press release stated.
The company has filed several customary ‘first-day’ motions seeking authorisation to maintain its operations during the court-supervised process.
These include the authority to continue payment of employee wages and benefits, as well as post-petition obligations to its vendor community.
As part of the process, higher and better bids will be solicited, following the approval of bidding procedures under Section 363 of the US Bankruptcy Code.
Proskauer Rose LLP is serving as legal counsel, Ankura Consulting Group is serving as restructuring advisor and PJ Solomon is serving as investment banker to KB US Holdings, Inc.
Specialty Food
Balducci’s is one of the leaders in gourmet specialty food in the US, offering the finest cheese and meats, fish, fresh produce and grocery items. It operates in New York, Connecticut, Maryland, and Virginia.
Kings Food Markets is one of the finest food stores to serve New Jersey, Long Island and Connecticut, offering fresh, sustainable and quality food items.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.
