Auction for Bankrupted Strack & Van Til Stores scheduled for Tuesday July 11

The Northwest Indiana Times is reporting that the auction for bankrupted Strack & Van Til Stores  is scheduled for Tuesday July 11. There were  no bidders deemed successful last week, and the auction was rescheduled. It’s now slated to take place at noon Tuesday in the offices of the law firm Weil, Gotshal & Manges LLP in New York City. The original auction offering was for only the 19 Strack & Van Til stores, but now up for auction is all of Strack’s parent company Central Grocers properties which includes all of their Ultra stores across northern IL , a 930,000-square-foot warehouse in Joliet, IL., Strack & Van Til’s corporate headquarters in Highland, IN., Strack & Van Til’s 10,0000-square-foot central bakery in Valparaiso and of course the existing 19 Strack & Van Til stores.

Central Grocers, a cooperative of 400 independent groceries throughout the Chicago area, is going out of business after it amassed $225 million in debt and creditors sued to push it into bankruptcy in May. The century-old wholesaler, which obtained 80 percent of Highland-based Strack & Van Til in the 1990s, said in a Chapter 11 bankruptcy filing that it struggled with intense competition and historically low prices in a sector with razor-thin profit margins.

Jewel has now said it is interested in purchasing Strack & Van Til stores across Northwest Indiana to expand its brand, but Central Grocers is not disclosing any information about the number of bidders, or the amount that’s being bid, which is estimated to be over S100 million for the entire mega sized grocery business that is the Central Grocers company.

In a report on June 26th it was stated that Strack & Van Til’s parent company Central Grocers would also be liquidating $20 million worth of groceries at its Joliet warehouse as it winds down business operations.

Story information from The Northwest Indiana Times.

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