A regional supermarket chain just filed for bankruptcy despite surging grocery sales
- KB US Holdings, the owner of Kings Food Markets and Balducci's, has filed for bankruptcy.
- In court papers, the company said the pandemic has boosted grocery sales but "will not persist indefinitely and has created uncertain and unprecedented circumstances."
The owner of Kings Food Markets and Balducci's has filed for bankruptcy despite surging grocery sales as consumers cook more meals at home amid the pandemic.
KB US Holdings, the parent company of the two supermarket chains, said in court papers that the pandemic-fueled sales boost has provided "a brief respite from its liquidity challenges."
But "the pandemic will not persist indefinitely and has created uncertain and unprecedented circumstances," the company said.
"Accordingly, it is more critical than ever for the Debtors to execute their sale strategy expeditiously and continue as a going concern to save jobs and supply their communities with necessary good," the company said.
KB US Holdings, which operates 35 grocery stores, will hold an auction for its assets. The company said it already has a bid for $75 million from New York-based TLI Bedrock LLC.
KB's supermarkets are located in New York, New Jersey, Connecticut, Virginia, and Maryland. The company employs more than 2,900 people.
Two other regional grocery chains — Fairway Market and Lucky's Market — have filed for bankruptcy this year and announced dozens of store closings.