FLORIDA, N.Y. -- Big V Supermarkets here has received a second buyout offer, this one from Stop & Shop Supermarket Co., Quincy, Mass., an Ahold operating company.
from its supplier, Wakefern Food Corp., Elizabeth, N.J.
Stop & Shop said it had entered into a letter of intent with representatives of the creditors of Big V to purchase 27 of its 31 stores and other company assets for $255 million.
The offer came on the same day earlier this month Big V filed a plan of reorganization in U.S. Bankruptcy Court based on a term sheet outlining Big V's sale Wakefern, according to Kimberly Krieger, spokeswoman for Big V.
As previously reported, the term sheet with Wakefern provides for a purchase of virtually all of Big V's assets for $150 million, plus the assumption of considerable debt, as well as other unspecified liabilities. Although Big V filed its reorganization plan based on a sale to Wakefern, the company still retains exclusivity in deciding what path of reorganization it will take. As a result, Big V could decide to terminate the nonbinding agreement with Wakefern.
Krieger said, "At this point, we are most interested in maximizing value for all of Big V's stakeholders."
Stop & Shop said it will need the approval of the court and government regulators for it to buy Big V.