Court accepts Roundy’s 31-store purchase bid
Jun 5, 2003 12:00 PM, from staff and wire reportsRoundy’s Inc has announced that its auction bid to purchase 31 Rainbow Foods stores from Fleming Companies Inc has been approved by the United States Bankruptcy Court in Wilmington DE. Wisconsin-based Roundy’s agreed to pay $44 million in cash plus cost of inventory and assumption of certain capitalized leases.
The food wholesale and retail firm will now own and operate 30 stores in the Minneapolis-St Paul MN metropolitan area and one near Schofield WI. Roundy’s will stagger the three-day closings and permanent reopenings of the 31 stores to ensure that each store is restocked and upgraded according to company standards. In addition, Roundy’s will hire all of the employees currently employed at the 31 stores, and all stores will retain the Rainbow Foods name.
Lewisville TX-based Fleming and its operating subsidiaries filed voluntary petitions April 1, 2003, for reorganization under Chapter 11 of the US Bankruptcy Code.
Roundy’s supplies more than 800 supermarkets in 14 states from eight distribution centers. It operates more than 80 stores in Wisconsin as Pick ’n Save and Copps Food Centers.