Central Grocers Files Chapter 11 Bankruptcy
Central Grocers, Inc. has announced that the company and all of its subsidiaries have voluntarily elected to file for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The company intends to use this court-supervised process to conduct an orderly sale of its Strack & Van Til stores as going concerns and anticipates entering into a sale agreement with a stalking horse bidder in the near future. Central Grocers is also seeking to sell its distribution center in Joliet as it winds down its wholesale distribution operations. The company has been cooperating with its lenders and expects to have access to sufficient liquidity to continue operating its stores and winding down the distribution center in an orderly fashion.
Strack & Van Til Stores Are Open for Business
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All 22 Strack & Van Til, Town & Country Market and Ultra Foods stores in Indiana and Illinois are open and serving customers. Employees are receiving their pay in the ordinary course. Strack & Van Til intends to pay vendors in full for goods and services provided on or after the filing date, May 4, 2017.
Jeff Strack, President and Chief Executive Officer of Strack & Van Til, said, “Our stores are open, and we are as focused as ever on supporting our customers and providing the legendary service that we are known for. As we move through this process, our priorities, values and commitments to our customers and our communities will not change. We thank our loyal customers for their continued support, and we thank our employees for their hard work and dedication.”
Central Grocers Working Toward Sale of Stores and Distribution Facility
Central Grocers is continuing to work toward implementing a sale of the Strack & Van Til stores and a sale of its distribution center in Joliet and certain other assets. It is anticipated that any such sale transactions will be conducted pursuant to a court-supervised auction process under Section 363 of the U.S. Bankruptcy Code.
Ken Nemeth, President and Chief Executive Officer of Central Grocers, said, “In light of the increasingly difficult environment for independent supermarkets and retailers, we have been working tirelessly to achieve an outcome that is in the best interests of our stakeholders. We are using this court-supervised sale process to provide us the time and flexibility to conduct an orderly sale of the Strack & Van Til stores, while we work to sell the warehouse in Joliet and wind down our wholesale distribution operations.”
The company has filed a number of customary motions seeking court authorization to continue to support its operations during the court-supervised process, including payment of employee wages and benefits. In addition, the company intends to file a motion shortly in the U.S. Bankruptcy Court for the Northern District of Illinois seeking to dismiss the involuntary bankruptcy case commenced against Central Grocers in view of its voluntary Chapter 11 filing.
FDA Extends Menu Labeling Compliance Date to 2018
The U.S. Food and Drug Administration is extending the compliance date for menu labeling requirements from May 5, 2017 to May 7, 2018. This extension allows for further consideration of what opportunities there may be to reduce costs and enhance the flexibility of these requirements beyond those reflected in the interim final rule.
The FDA is inviting comments for 60 days on the implementation of the menu labeling requirements, such as approaches to reduce regulatory burden or increase flexibility related to (a) calorie disclosure signage for self-service foods, including buffets and grab-and-go foods; (b) methods for providing calorie disclosure information other than on the menu itself; and (c) criteria for distinguishing between menus and other information presented to the consumer.
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Submit electronic comments to http://www.regulations.gov. Submit written comments to the Division of Dockets Management (HFA-305), Food and Drug Administration, 5630 Fishers Lane, rm. 1061, Rockville, MD 20852. All comments should be identified with Docket No. FDA-2011-F-0172 for “Food Labeling; Nutrition Labeling of Standard Menu Items in Restaurants and Similar Retail Food Establishments; Extension of Compliance Date and Request for Comments.”
Natural Grocers Opens in Jonesboro, Arkansas on May 10
Natural Grocers will open its third Arkansas store on Wednesday, May 10, 2017. The new store will open at 8:30 a.m. and is located at 1315 South Caraway Road. The store will anchor the Caraway Plaza shopping center at the corner of Caraway Road and Nettleton Avenue.
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