Save A Lot Announces Sale of 32 Stores to Yellow Banana
CLEVELAND, CHICAGO, & MILWAUKEE, WI - Save A Lot is on the move to convert its corporate-owned stores to local ownership. As part of its mission, the grocer recently announced the sale of 32 of its locations to Yellow Banana has been completed. The stores, which are situated across the Greater Cleveland, Chicago, and Milwaukee areas, generate revenues over $130 million annually, positioning Yellow Banana as one of the retailer’s largest partners nationwide.
“We are thrilled to have the passionate team at Yellow Banana join our Save A Lot network,” said Chris Hooks, Executive Vice President and Chief Merchandising Officer of Save A Lot. “Their mindset and commitment to service, together with Save A Lot’s mission of providing convenient access to high-quality foods, will be a winning combination. Their near-term investment to substantially and visibly upgrade all stores will only further lead to a profound impact on how customers enjoy the Save A Lot experience for many years to come.”
Yellow Banana is controlled by 127 Wall Holdings, a minority-owned holding company that was founded by Walker Brumskine, Ademola Adewale-Sadik, and Michael Nance, according to a press release. The three met at Yale Law School and are joined by seasoned operator, 127 Wall Holdings Co-Founder, and Yellow Banana Chief Executive Officer Joseph Canfield.
“We are thrilled to partner with Save A Lot on this opportunity to invest in underserved, predominantly minority communities in three major cities,” said Brumskine, a Co-Founder of 127 Wall Holdings.
Looking to maintain current wages, health insurance, and retirement benefits, Yellow Banana intends to employ all of the more than 400 store associates currently working at the Save A Lot locations. The stores will also continue to emphasize convenience while offering high-quality products, delivering value, and promoting an easy-to-shop store experience.
“As the COVID-19 pandemic has made clear, providing affordable, high-quality nutrition to working families is an essential service that creates meaningful impact,” Adewale-Sadik, another Co-Founder of 127 Wall Holdings, added.
Additionally, Yellow Banana plans to expand each store’s assortment of local and regional products as well as hire new talent from the local communities.
“In many cases, our stores are the only accessible option for healthy, affordable groceries, and we will work hard to earn our place as the beloved hometown grocer across our communities,” commented Canfield, Chief Executive Officer of Yellow Banana.
Under Yellow Banana’s ownership, each of the stores will undergo a significant remodel in 2022 to reflect Save A Lot’s updated brand image. Together, the updates will enhance the shopping environment inside and outside of the stores, including new décor, updated flooring and lighting, and updated fresh produce and meat cases.
“It is an honor to invest in communities like the one in which I was raised. The philosophy that guides our collaboration with Save A Lot is centered on providing both food and job security to those communities that are most in need,” said Nance.
Throughout the deal, Corbel Capital Partners served as financing partner and Squire Patton Boggs served as legal counsel to 127 Holdings in connection to the transaction.
“It is a pleasure to facilitate this deal between 127 Wall Holdings, Yellow Banana, and Save A Lot, and to see an important need filled by offering quality foods at affordable prices for countless communities,” said Michael Jones, Principal at Corbel Capital Partners. “We expect this to be only the start of future growth and collaboration with 127 Wall Holdings, Corbel, and Save A Lot.”
As Save A Lot looks to transfer corporate ownership to local operators, which of its locations will be the next to change hands? Keep a tab open for AndNowUKnow to find out.