Lucky’s Market Announces Chapter 11 Filing; Asset Purchase Agreement with ALDI, Publix

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Niwot, CO—Natural foods chain Lucky’s Market, which last week announced the closure of most of its locations, issued the following updates on January 27:

  • Lucky’s will continue to operate seven of its locations, including its markets in Traverse City, MI; Cleveland, OH; Columbus, OH; Columbia, MO; Melbourne, FL; North Boulder and Fort Collins, CO. UPDATE 1/29: Lucky’s Enters Asset Purchase Agreement with Company’s Founders
  • The company will voluntarily file for Chapter 11 protection to facilitate the sale of its remaining assets
  • Lucky’s has signed an Asset Purchase Agreement to sell six stores to ALDI (five leased store properties and one owned property), subject to court approval and an overbidding process. Lucky’s said it has retained PJ Solomon to assist in the sales of these stores and other assets.
  • UPDATE 1/28: Lucky’s also has signed Asset Purchase Agreements with Publix Super Markets Inc. for five leased store properties, subject to court approval and an overbidding process.
  • Lucky’s still plans to cease operations in the 32 previously identified locations in the coming weeks and is currently running sales for its customers in those stores.
Related: Lucky’s Market Reportedly Closing Most Stores
Lucky’s Confirms Store Closures; Outlines Timeline

Lucky’s explained in a press release that these decisions were made “after careful deliberation and a thorough review of strategic and financial alternatives.” The announcement further noted: At the time of filing, the Company had sufficient cash on hand and an agreement for the consensual use of cash collateral. As such, the Company should have the continued ability to meet its financial obligations, including those to its employees, as well as to vendors for the continued supply of product to its operating locations. 

Related: 2020 Retailer Playbook
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