KB US Holdings, Inc., the parent company of both Kings Food Markets and Balducci’s Food Lover’s Market, announced Monday it has accepted a stalking horse bid from TLI Bedrock to purchase the Company for $75 million. To facilitate the sale, KB and its subsidiaries sought Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of New York.
Kings, with locations locally in Upper Montclair and Verona, was founded in 1936. The chain celebrated 80 years in 2016.
“We are pleased to be moving forward with a sale so we can position Kings and Balducci’s for even greater long-term success. 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,” said Judith Spires, CEO of KB US Holdings, Inc.
As part of the Chapter 11 filing, the Company has filed a number of customary “first day” motions seeking authorization to maintain its operations during the court-supervised process, including authority to continue payment of employee wages and benefits, as well as post-petition obligations to its vendor community.
Spires announced the news to Kings customers:
Throughout the COVID-19 pandemic, transparency with you has been one of my top priorities and I regularly communicated our efforts to keep you and our stores safe. In this same spirit this note is to update you on some news from our business. Today, we announced that the parent company of Kings Food Markets, KB US Holdings, Inc., is pursuing a sale process and has commenced voluntary Chapter 11 proceedings to effectuate this transaction. This process will position our Company for long-term success.
Our stores will continue to be fully operational, offering the quality product and selections you have come to expect. And of course, they will continue to be staffed by all of your favorite people. Please be assured that the wages and benefits of all of our Associates will continue as usual, and our Associates will continue to provide you with the top-quality service you depend on.
During COVID, you have shown us how important we are to your community and this sale process will ensure that we will be able to serve you for years to come.
Your support and patronage are so greatly appreciated. If you have any questions, please feel free to email firstname.lastname@example.org and we will get back to you.