KB US Holdings, the parent company of the only supermarket within Verona’s borders, Kings Food Markets, filed for Chapter 11 bankruptcy yesterday. Kings also operates one store in Upper Montclair; KB is also the parent company of Balducci’s Food Lover’s Market.
In its press release yesterday, KB said that it had accepted a so-called stalking-horse bid from TLI Bedrock, a real estate investment company, to buy the company for $75 million. In a stalking-horse bid, the selling company protects itself from low bids on its assets.
The announcement seemed to indicate that Kings would remain open. KB said that it has “sufficient liquidity” to meet its obligations and will operate its business. It said it would continue payment of employee wages and benefits, and pay its vendors. According to The Wall Street Journal, KB operates 25 Kings and 10 Balducci’s markets in New Jersey, New York, Connecticut, Virginia and Maryland, and employs more than 2,100 people.
“We are pleased to be moving forward with a sale so we can position Kings and Balducci’s for even greater long-term success,” Judith Spires, KB’s chief executive, said in the press release. “During this COVID crisis, our associates and communities have demonstrated not only the viability but absolute necessity of our markets in their communities. Our sales and service have never been stronger; we are confident we will emerge from this process without missing a beat, well-positioned for future stability and success.”
