BIRMINGHAM, Ala. — A bid to acquire some Bruno’s stores solicited by its labor union is “only marginally above liquidation value and filled with contingencies that are untenable,” attorneys for Bruno’s stated in a letter to a U.S. Bankruptcy Court judge.
The letter was filed as Judge Benjamin Cohen assesses a decision in a battle between Bruno’s and United Food and Commercial Workers Local 1657 to reject a contract between them which, according to Bruno’s would facilitate a sale. The chain, which filed for Chapter 11 in February, has said it needs to find a buyer or be forced to liquidate.
The union revealed it had solicited an offer to buy a block of stores from an unnamed labor-friendly suitor on Wednesday, saying the offer supported keeping the contract and its successor agreement intact. Bruno’s, however, said the offer covers only 36 of the 56 stores, which would leave Bruno’s to sell the rest and require the contracts to be assumed. That, Bruno’s said, has dampened interest.
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