A leading company oriented towards virtual transformation.
Kings Food Markets and Balducci’s owner filed for bankruptcy despite rising grocery sales as consumers prepare more food at home amid the pandemic.
KB US Holdings, the parent company of the two supermarket chains, said in court documents that the pandemic-driven sales increase had “a brief respite from its liquidity problems.”
But “the pandemic will persist indefinitely and has created dubious and unprecedented circumstances,” the corporation said.
“As a result, it is more critical than ever for borrowers to execute their sales strategy temporarily and continue as a permanent business to save jobs and provide goods to their communities,” the company said.
KB US Holdings, which operates 35 grocery stores, will hold an auction for its assets.The company said it already has a $75 million offer from New York-based TLI Bedrock LLC.
KB supermarkets are in New York, New Jersey, Connecticut, Virginia and Maryland. The company employs more than 2,900 people.
Two regional supermarket chains, Fairway Market and Lucky’s Market, filed for bankruptcy this year and announced dozens of store closures.