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Strack & Van Til Goes Bankrupt, Jewel-Osco Looking to buy Company
The bankruptcy court docket is accepting bids by June 26 on Strack & Van Til stores, Central Grocers’ 930,000-sq.-foot warehouse in Joliet, IL and Ultra Foods stores in Highland, Merrillville and Kankakee, Illinois. An auction will take place in a New York City law firm on June 29.
Jewel-Osco is the preferred, purchaser, with a proposal of $70 million for the stores and $30 million for the stock on the shelves, in keeping with court paperwork. Jewel will get a termination price of $500,000 if it ends up getting outbid for the stores.
If no other bidder steps forward, the U.S. Bankruptcy Court District of Delaware is slated to approve the sale to Jewel on June 28, in line with a court docket order. If there’s at least one different certified bid, an auction will take place after which the courtroom will have a hearing to approve a sale on July 10.
Jewel would take over Strack & Van Til and Town & Country stores in Cedar Lake, Chesterton, Crown Point, East Chicago, Hammond, Highland, Hobart, Lowell, Munster, Portage, Rensselaer, St. John, Schererville, Valparaiso and Whiting. The Itasca-based chain mentioned it wasn’t anticipating layoffs however suggested it likely would rebrand the stores, which have served Northwest Indiana for almost 60 years.
Strack and Van Til Chief Executive Officer Jeff Strack said that Central Grocers (Strack’s parent company) hadn’t been paying its bills and creditors such as Coca Cola and General Mills had filed an involuntary bankruptcy petition on Strack’s in early May.
Story by Jasper County Online News