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Andronico's Gets $20 Million Bid From Renovo

SAN FRANCISCO — Andronico's Community Markets here has received a bid of $20 million from Renovo Capital, a Texas-based private investment firm, to buy the company and move it out of Chapter 11 bankruptcy protection.

SAN FRANCISCO — Andronico's Community Markets here has received a bid of $20 million from Renovo Capital, a Texas-based private investment firm, to buy the company and move it out of Chapter 11 bankruptcy protection.

Renovo already owns $29 million of Andronico's secured debt and has loaned the company $5 million to enable it to operate through mid-October, a chain spokesman said.

Two other potential buyers have expressed an interest in acquiring Andronico's, but the spokesman declined to indicate who they were. However, he said that, although the bankruptcy process requires all offers to be considered, Renovo is likely to end up as the buyer.

At the time Andronico's filed for Chapter 11 on Aug. 22, the spokesman told SN it was a pre-packaged bankruptcy that anticipated a sale of all assets to Renovo pending a full audit. That audit is still underway, he said Friday.

If Renovo is the buyer, Andronico's anticipates its management team and store personnel will remain in place, with the new owners investing money immediately in inventory and physical improvements in anticipation of the holidays, the spokesman told SN.

According to court records, Andronico's lost $4.5 million for the first 11 months of fiscal 2011, ending in July, on sales of $108.4 million; for the prior fiscal year, it lost $3.5 million on sales of $121.5 million.