Kings, Balducci’s parent accepts $75M bid for chains
KB US Holdings, the operator of Kings Food Markets and Balducci’s Food Lover’s Market, is selling the retail chains and filing for bankruptcy. The company has accepted a stalking horse bid to sell the company to private equity firm TLI Bedrock for $75 million and sought Chapter 11 protection in order to move the sale along.
KB US Holdings acquired Kings — which operates 25 stores in New Jersey, Long Island and Connecticut — and Balducci’s, which operates in New York, Maryland, Connecticut and Virginia, in August 2016. Balducci's has a proud private brand line and an executive chef cooking in its locations for meal options.
"We are pleased to be moving forward with a sale so we can position Kings and Balducci's for even greater long-term success,” said Judith Spires, CEO of KB US Holdings. “During this COVID crisis, our associates and communities have demonstrated not only the viability but absolute necessity of our markets in their communities. Our sales and service have never been stronger; we are confident we will emerge from this process without missing a beat, well-positioned for future stability and success.”
In addition to the sale, KB said it has received roughly $20 million in debtor-in-possession financing from an existing secured lender, which will be used, alongside cash from ongoing operations, to support the business through the sales process, once the financing receives court approval. The company said that it is able to meet its go-forward business obligations and will continue operating as usual and pay its business partners for any goods or services provided on or after Aug. 23.