Fleming intends to sell wholesale grocery business
Jun 30, 2003 12:00 PM, from staff and wire reportsFleming Companies Inc and C&S Wholesale Grocers Inc have entered into a letter of intent regarding the sale of Fleming’s wholesale grocery business to C&S. The letter of intent contemplates the sale of all of Fleming’s grocery wholesale operations and assets to C&S. The letter of intent is subject to the execution of a definitive asset purchase agreement.
In a separate arrangement, C&S has agreed to begin supplying Fleming promptly with selected vendor products for distribution to Fleming retail customers.
“These actions represent major steps in Fleming’s Chapter 11 process,” said Pete Willmott, the company’s interim president and chief executive officer . “We believe the best way to maximize the value of the business for our constituents is to sell Fleming’s grocery wholesale business to a strong buyer that can provide our customers with the service and reliability they need.”
Mark Gross, C&S executive vice-president, said, “The purchase of Fleming’s wholesale grocery operations would allow us to expand our business into parts of the country where we do not presently operate.”
Fleming expects to file a motion with the United States Bankruptcy Court in Delaware to establish procedures for the sale of its grocery wholesale operations. The company also expects to file a definitive binding asset purchase agreement with C&S.