Central Grocers Receives Bid for Strack & Van Til Stores from Jewel-Osco
JOLIET, IL – In the latest wave of news surrounding Central Grocers and its subsidiaries, the company has received a suitor for a good portion of its Strack & Van Til stores in Jewel-Osco. Earlier this month, the company announced it would be voluntarily filing for Chapter 11 bankruptcy, and selling off the chain as a result.
One of Chicago’s biggest local chains, Jewel-Osco is reportedly pursuing the purchase with a $100 million bid, according to The Northwest Indiana Times. The bid would encompass Strack & Van Til’s remaining 19 stores. Jewel Food Stores is also known as Jewel Food Stores, and is a subsidiary of Albertsons.
"Our two companies share a rich history of serving customers in the Midwest as well as core beliefs in working hard to serve customers and deliver value every day on the finest quality fresh foods and local products," stated Jewel-Osco Division President Doug Cygan in a statement according to the Daily Herald.
Jewel-Osco has offered up $70 million for the locations, including the approximated $30 million in inventory that is still left in the stores after the purchase’s completion. The chain plans to keep the locations open after their buyout.
Jewel-Osco stated it was the initial bidder that Central Grocers chose to negotiate with before the auction of its banner. The auction was initially expected to begin on June 2, if the bankruptcy court had approved the procedures. This purchase bid will still need to go through the court supervised sale process.
If the purchase is approved, Jewel-Osco plans to keep most of the employees, in addition to keeping the stores open. This purchase will expand the Jewel-Osco footprint further into Indiana.
Strack & Van Til will be closing another 14 stores in Illinois this year that Jewel-Osco did not put in a bid for. Another buyer could potentially buy out the stores in bankruptcy court if it files a better bid by a deadline of June 21.
Strack & Van Til accounts for around half of Central Grocers’ $2 billion a year business, according to the company. Central Grocers is still seeking a buyer for its distribution center in Joliet.
What's next for Central Grocers and Strack & Van Til? AndNowUKnow will have all the latest updates.