Eagle Food Centers to put assets up for sale
Jun 18, 2003 12:00 PM, from staff and wire reports
Eagle Food Centers Inc, which owns and operates 59 supermarkets in Illinois and Iowa, will begin a sale of substantially all of the assets of its operating units through competitive bidding procedures under Section 363 of the United States Bankruptcy Code.“Since the company’s voluntary Chapter 11 filing in April, management and the board of directors have been exploring various alternatives that would result in maximum recovery to our creditors, and at the same time, have the least impact on the jobs of our employees,” said Robert J Kelly, chairman, chief executive officer, and president.
The Milan IL-based firm will continue to develop a stand-alone plan of reorganization to maintain and operate Eagle Food stores. Kelly said that as part of its plan to concentrate resources on operations with the strongest potential for future growth, Eagle Food will close nine Eagle Food stores, including its BOGO’s store, by the end of its fiscal second quarter.
Stores to be closed are in Davenport IA, Iowa City IA, Freeport IL, Westmont IL, Decatur IL, Macomb IL, and two locations in Springfield IL. The BOGO’s store is in Princeton IL. A court hearing has been scheduled for June 27, 2003, to consider Eagle Food’s proposed bidding procedures and the store closing request.
