Organic grocer Lucky’s Market files for bankruptcy, plans to sell some locations to Aldi, Publix
The company was founded in 2003 to compete with the likes of Whole Foods
An organic grocery chain majority-owned by Kroger filed for bankruptcy Monday and said it plans to close 32 locations in 10 states by the end of February.
Lucky’s Market has approximately $600 million in liabilities, according to a court filing reported by The Wall Street Journal. The company also has 3,015 employees.
The grocery store based in Niwot, Colorado, plans to keep seven locations open in North Boulder and Fort Collins, Colorado; Traverse City, Michigan; West Melbourne, Florida; Cleveland and Columbus, Ohio; and Columbia, Missouri., according to a report from CBS News.
Niwot, Colo.-based organic grocer Lucky's Market filed for bankruptcy Monday. (Lucky's Market)
TARGET, OTHER RETAILERS TO BENEFIT FROM PIER 1 CLOSURES: REPORT
The chain hopes to sell those locations off, The Journal reported.
According to CBS, the grocery store’s decision to file for Chapter 11 will allow the company to sell its assets.
Already, Lucky’s has signed purchase agreements with Aldi -- for five leased stores and one owned store -- and Publix -- for five leased stores -- according to The Journal.
Aldi and Publix both confirmed to FOX Business that they have agreements with Lucky's. A Publix spokesperson said that the company has a contract to buy five leases from Lucky's, saying that Publix is "in the due diligence process."
Aldi's U.S. vice president of national real estate, Dan Gavin, said in a statement that Aldi is "acquiring several Lucky's Market locations in Florida."
BRICK-AND-MORTAR STORES AREN’T DYING, RETAIL EXPERT SAYS
Lucky’s Market was founded by two chefs in 2003 in Boulder, Colorado. The grocery store was created to be an organic and natural grocery store -- much like Whole Foods -- but with affordable prices.
The grocery chain also plans to close 32 of its 39 locations. (Lucky's Market)
“It’s just that somehow so much of the good stuff has become really expensive,” the company says on its website. “Sold in stores that act like they’re doing you a big fat favor bringing it to you. And maybe they are, but they shouldn’t act like it. That’s why we started Lucky’s Market.”
Lucky’s Market had 17 locations by 2016, when Kroger invested in the company, according to CBS.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| KR | THE KROGER CO. | 58.02 | -0.74 | -1.26% |
However, in December, Kroger said it would take a $238 million charge and divest from Lucky’s, the website reported.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
On Jan. 22. Lucky’s Market announced the closing of many of its locations on social media.
In a Facebook post, the company wrote, in part: “We are sad to say the rumors are true. We’re closing many of our stores and couldn’t be more upset to be leaving so many communities who have supported us for years. What we built with you, our loyal customers, was not in vain. You helped contribute to our mission: Good Food For All. We appreciate the many shopping trips you put in and pints of beer you drank in our stores.”