Central Grocers, Inc. files for Chapter 11
Published on May 4, 2017 by FoodIndustry.Com Editorial Staff | email@example.com
The parent company of Strack & Van Til, Central Grocers Inc. has filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The move is in response to several creditors had previously filed an involuntary bankruptcy case against the company in the U.S. Bankruptcy Court Northern District of Illinois in an attempt to recoup monies owed to them. They sought a Chapter 7 bankruptcy and requested for trustee to be appointed who would instead sell off assets to repay creditors some of what they’re owed.
Central Grocers, a $2 billion company, is a wholesaler supplying about 400 independent supermarkets in the U.S. In addition to its wholesale business, Central Grocers operates 22 stores in Illinois and Indiana under the Strack and Van Til, Ultra Foods and Town & Country Market banners.
According to Jeff Strack, President and Chief Executive Officer of Strack & Van Til, “Our stores are open, and we are as focused as ever on supporting our customers and providing the legendary service that we are known for. As we move through this process, our priorities, values and commitments to our customers and our communities will not change. We thank our loyal customers for their continued support, and we thank our employees for their hard work and dedication.” A press release claims that Strack & Van Til intends to pay vendors in full for goods and services provided on or after the filing date, May 4, 2017.
In April, 2017 Central Grocers announced that it is selling off 22 Strack & Van Til supermarkets and closing nine Ultra Foods Market locations. Central Grocers also is seeking to sell its distribution center in Joliet, IL as it winds down its wholesale operations. The company says it has been cooperating with its lenders and expects to have access to sufficient liquidity to continue operating its stores and while closing down the distribution center.