Fleming Obtains Approval for Sale of 40 Retail Stores
DALLAS - Fleming Companies Inc. on Friday announced that the U.S. Bankruptcy Court in Wilmington, Del., approved agreements to sell 40 company-owned retail stores.
The approval includes:
-- The sale of 31 Minnesota-based Rainbow Foods stores to Roundy's Inc. for approximately $84 million in cash, inclusive of inventory estimated at approximately $40 million. Roundy's is also expected to assume long-term capital leases for the stores.
-- The sale of six California-based Food4Less stores to Save Mart Supermarkets for approximately $27 million in cash, inclusive of inventory estimated at approximately $5 million. Save Mart is also expected to assume long-term capital leases for the stores.
-- The sale of three California-based Food4Less stores to Kroger Supermarkets for approximately $7.4 million in cash, inclusive of inventory estimated at approximately $2.4 million. Kroger is also expected to assume long-term capital leases for the stores.
In each case, the buyers have agreed to hire substantially all of the current store associates. The three transactions are expected to be completed by the end of June 2003.
The approval includes:
-- The sale of 31 Minnesota-based Rainbow Foods stores to Roundy's Inc. for approximately $84 million in cash, inclusive of inventory estimated at approximately $40 million. Roundy's is also expected to assume long-term capital leases for the stores.
-- The sale of six California-based Food4Less stores to Save Mart Supermarkets for approximately $27 million in cash, inclusive of inventory estimated at approximately $5 million. Save Mart is also expected to assume long-term capital leases for the stores.
-- The sale of three California-based Food4Less stores to Kroger Supermarkets for approximately $7.4 million in cash, inclusive of inventory estimated at approximately $2.4 million. Kroger is also expected to assume long-term capital leases for the stores.
In each case, the buyers have agreed to hire substantially all of the current store associates. The three transactions are expected to be completed by the end of June 2003.