Grand Union Co., Wayne, N.J., said last week it has received bankruptcy court approval for its sale of 185 stores to its lead supplier, C&S Wholesale Grocers, Brattleboro, Vt. Judge Novalyn L. Winfield of the U.S. Bankruptcy Court in Newark, N.J., addressed virtually all of the objections brought by landlords and other parties, the company added. Grand Union and C&S have formed several "transition teams" to help transfer the stores to C&S, and to other parties purchasing stores from C&S.
R> Albertson's, Boise, Idaho, said last week it is awaiting word from Utah concerning the amount of money the state hopes to collect on a debt incurred by American Stores Co., which Albertson's acquired last year. The debt stems from a $3.5 million grant the state gave to American Stores in exchange for its commitment to build a corporate headquarters, employ more than 1,600 people, and buy goods and services from Utah vendors. Had American Stores met its contractual obligations on the grant, no payback would have been required, a spokesman for the state told SN; however, by not meeting those obligations, the money constitutes a loan that must be repaid. The spokesman said the state has concluded an audit of Albertson's and plans to submit a proposal to the retailer within the next few weeks regarding how much it expects the chain to pay.
Supervalu, Minneapolis, said last week it has completed its takeover of Ro-Jack's Food Stores, Mansfield, Mass. The distributor said the transaction involved a voluntary transfer of assets by Ro-Jack's to Supervalu, its major secured creditor. There are 11 Ro-Jack's stores -- six in southeastern Massachusetts and five in Rhode Island. Supervalu said it plans to retain the Ro-Jack's name on the stores. Ro-Jack's said a condition of the transaction was Supervalu's assurance that all store employees and a majority of central management have the opportunity to remain in their current or comparable positions.
