Gordy’s Market to Sell More Stores

Wisconsin-based Gordy’s Markets has received approval to auction off more stores, in addition to the the three locations that the family-owned grocer sold to Festival Foods last month. The sale is an effort to pay back debts, which according to court filings total more than $70 million, as well as a $40 million claim filed by the grocer’s supplier, Grand Rapids, Mich.-based SpartanNash. The chain operates a total of 26 stores across northern Wisconsin.

Five stores were sold to Northbrook, Ill.-based Hilco Global LLC at the auction, while another seven stores were sold to various buyers. SpartanNash purchased three stores. Six stores will remain under the Gordy’s banner for the time being; reports indicate that they could be part of new company, with the Schafer family, current owners of the chain, remaining as part owners. The remaining two stores weren't sold at the auction.

A judge has approved the sale of 11 of the stores over the objections of two creditors, and the sale of four more is on hold due to objections filed by some of the bidders.