By Jamie Lynn Connors
Kings Food Markets, a chain with supermarkets in Morristown, Chatham and Bedminster, is being sold as part of bankruptcy proceedings launched by its parent company.
KB US Holdings Inc. filed for Chapter 11 this week to “facilitate an orderly sale” of Kings and Balducci’s Food Lover’s Market, KB Holdings said in a statement.
Business will continue during the sale, and employees won’t be adversely impacted, according to Kings CEO Judy Spires.
“This process will position our Company for long-term success,” Spires said in a message to customers.
“Our stores will continue to be fully operational, offering the quality product and selections you have come to expect.
“And of course, they will continue to be staffed by all of your favorite people. Please be assured that the wages and benefits of all of our Associates will continue as usual, and our Associates will continue to provide you with the top-quality service you depend on.”
Kings’ parent company has accepted a $75 million stalking horse offer from TLI Bedrock, a multi-strategy fund, with a targeted closing date in 60 days.
A stalking horse offer is an initial, minimum bid for assets of a bankrupt company. If a higher bidder wins out, the stalking horse bidder often is reimbursed for due diligence expenses and paid a breakup fee.
“Stalking horse” refers to a hunter hiding behind a real or fake horse, according to Investopedia.
KB Holdings filed in U.S. Bankruptcy Court for the Southern District of New York on Aug. 23, 2020. The company seeks court approval to continue the supermarkets’ short-term operations with $20 million from a secured lender and cash generated by the stores.
Established in 1936 as a family owned business on Long Island, Kings expanded to northern New Jersey after being sold to the British department store company Marks and Spencer in 1984.
Kings was acquired for $61 million in 2006 by Angelo, Gordon & Co. and MTN Capital Partners — New York private equity firms–and a former Duane Reade CEO. KB US Holdings took over four years ago. Kings now has 25 locations, with headquarters in Parsippany.
According to Glassdoor, a site for job seekers and recruiters, Kings employs between 1,000 and 5000 people and takes in $100 million to $500 million in revenue annually.
“During COVID, you have shown us how important we are to your community and this sale process will ensure that we will be able to serve you for years to come,” Spires told customers.
Kings has been a big supporter of Grow It Green Morristown, a nonprofit that runs a community garden and a teaching farm.
The Morristown store underwent $3 million of renovations in 2015, amid growing local competition that now includes ShopRite, Whole Foods and Wegmans.
Balducci’s grew from a vegetable pushcart in Brooklyn in 1916 to a gourmet specialty chain with shops in New York, Connecticut, Maryland, and Virginia. Annual revenues are between $10 million and $25 million, Glassdoor reports.
Nobody has said that the Kings Supermarket in Morristown is leaving. The parent company filed for bankruptcy and another party is buying. The “closing” referred to in the news is the closing of the sale, not the closing of the store.
I can’t believe this is happening. The Signature Store we frequent and have friends and shop – is leaving. Yikes! Please Please PLEASE Someone save the day.