Lucky’s Market has filed for a voluntarily Chapter 11 Bankruptcy reorganization with a plan that would see it emerging with just seven stores.
On Tuesday, Jan. 21, the grocery announced its Neptune Beach and Oakleaf locations would be closing, along with all other Florida stores, except for the one in Melbourne.
Lucky’s said Monday it hopes to continue operating its stores in Traverse City, Mich.; Cleveland, Ohio; Columbus, Ohio; Columbia, Mo.; North Boulder and Fort Collins, Co.
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In all, the supermarket chain is shutting down 32 stores across the country in the coming weeks, with closing sales at those locations underway.
Lucky’s said in an email to WJCT News on Monday that it has signed an asset purchase agreement with ALDI for five leased store properties and the purchase of one owned property but didn’t announce the locations or whether they would be branded as ALDI stores.
The agreement is still subject to court approval and an overbidding process. In bankruptcy proceedings, overbidding refers to an auction conducted during a hearing to approve a bankruptcy sale.
The natural and organic supermarket chain’s decision to file for a bankruptcy reorganization follows Kroger's announcement last year that it was divesting its stake in Lucky’s Market.
“Kroger has decided to divest its interest in Lucky's Market and recognized a non-cash impairment charge of $238 million in the third quarter, and the portion of this charge attributable to Kroger is $131 million,” Kroger said in its third quarter earnings report.
Lucky’s Market had been expanding in Florida before Kroger’s announcement.
Bill Bortzfield can be reached at bbortzfield@wjct.org, 904-358-6349 or on Twitter at @BortzInJax.
