Court filing: Marsh seeks OK to sell 26 grocery stores
- Author: Joanne Flowers Jun 14, 2017,
Jun 14, 2017, 19:31
Those stores are expected to reopen under the Kroger banner, adding to its leading share in IN, though it was not immediately clear whether Kroger would use any of the units for replacement stores of existing units.
In a motion filed Tuesday in the Marsh Supermarkets' bankruptcy case, at least 11 of Marsh's 44 stores could be sold off to one of Kroger's subsidiaries, Topvalco Inc, according to source The Star Press.
In court documents, Marsh argues that condition doesn't apply to a business that buys those stores, or in a bankruptcy situation generally.
Generative Growth LLC, associated with the Findlay, Ohio, retailer Fresh Encounter, is acquiring another 15 stores.
The second successful bidder was Generative Growth II, LLC, which will assume leasing contracts for 15 stores in OH and Indiana.
Those are in Indianapolis, Columbus, Greensburg, Tipton, Marion, Hartford City, Elwood, Pendleton, New Palestine and Richmond. Marsh has countered that the agreement only bars Marsh from operating pharmacies at the stores, and that the language is not enforceable under the bankruptcy code.
But there's a problem: the two companies want to be able to put pharmacies back in the stores.
Marsh sold its pharmacy assets to a CVS subsidiary in April. CVS has filed an objection to the sale plan. There's no word yet what will happen to the 18 Indiana Marsh stores no one offered to buy. A judge has to overrule it before the deal proceeds.