These Two Beloved Regional Grocery Chains Just Filed for Bankruptcy
KB US Holdings, which owns Balducci's and Kings Food Markets grocery chains, has filed for bankruptcy. While grocery stores are witnessing a boost in sales during the pandemic, the brief uptick wasn't enough to reverse the company's years-long financial struggles.
Before the pandemic, KB Holdings reported historically low earnings due to competition from larger national chains and delivery services, as well as labor costs, according to the bankruptcy filing.
The two grocery chains jointly operate 35 locations in New York, New Jersey, Connecticut, Virginia, and Maryland. The gourmet grocer Balducci's was founded in 1915 in New York City, and acquired by the parent company in 2009. Kings' first location was opened in 1936 in Summit, NJ.
While this doesn't spell the end for Balducci's and Kings Food Markets, it does mean that the chains are about to undergo a change in ownership and potential store closures.
The company said it has already received a $75-million bid from New York-based TLI Bedrock LLC, pending further offers in a court-supervised auction. While the sale is ongoing, all of the grocery store locations will remain open.
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