Kings Food Markets Filed Voluntary Chapter 11

0
1817
Kings Supermarket, Del's Village Shopping Center, 115 Hawkins Place, Boonton

PARSIPPANY — KB US Holdings, Inc., parent company of the Kings Food Markets and Balducci’s Food Lover’s Market subsidiary banners, announced it has accepted a stalking horse bid from TLI Bedrock to purchase the Company for $75 million. To facilitate an orderly sale, KB and its subsidiaries have commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of New York.

Kings is located in Boonton, Florham Park, Morristown, and other locations throughout New Jersey.

“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.

In conjunction with the sale process, KB has obtained a commitment for approximately $20 million in debtor-in-possession financing from its existing secured lender.  Upon Court approval, the new financing, combined with cash generated from the Company’s ongoing operations, will be used to support the business throughout the sale process. KB has sufficient liquidity to meet its go-forward business obligations and will operate its business as usual and pay its business partners for goods and services provided on or after August 23, 2020, the Chapter 11 filing date.

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 the authority to continue payment of employee wages and benefits, as well as post-petition obligations to its vendor community.

As part of the process, higher and better bids will be solicited, following the approval of bidding procedures under Section 363 of the U.S. Bankruptcy Code.

Proskauer Rose LLP is serving as legal counsel, Ankura Consulting Group is serving as restructuring advisor and PJ Solomon is serving as investment banker to KB US Holdings, Inc.

For additional information including access to Court filings and other documents related to the court-supervised process, click here.

Previous articleMurphy Announces New Modifications for General Election
Next articleGyms Can Reopen in New Jersey September 1
Frank Cahill
Publisher of Parsippany Focus since 1989 and Morris Focus since January 1, 2019 both covering a wide range of events. Mr. Cahill serves as the Executive Board Member of the Parsippany Area Chamber of Commerce, President of Kiwanis Club of Greater Parsippany Foundation, Vice Chairman of Parsippany-Troy Hills Economic Development Advisory Board and Co-Host of Focus on Business, Cable TV Business Show.