TAMPA, Fla. -- Kash n' Karry Food Stores here and a bondholder committee have reportedly agreed to a financial restructuring of the retailer, trade observers told SN last week.
hapter 11 bankruptcy filing, which the chain previously said was one option it was considering.
One trade observer said the restructuring plan that reportedly has been agreed to is "very similar" to management's initial proposal. The initial restructuring proposal called for Leonard Green & Partners, a Los Angeles investment group that controls Kash n' Karry, to invest $10 million cash into the 100-store company. Its shareholding would have been reduced from 61% to about 15%. Trade creditors were not expected to be affected by the restructuring.