SAN FRANCISCO — The sale of Andronico's Community Markets here to a Texas-based investment group was scheduled to close last week after receiving approval from the U.S. Bankruptcy Court a week earlier.
The price of the sale is approximately $16 million — roughly $4 million less than the original bid, a court-appointed spokesman for the retailer told SN.
He said the new owner — Renovo Capital, Dallas — is expected to retain existing management, including Bill Andronico, grandson of the founder, who will continue as president and chief executive officer.
Renovo is also expected to provide funds to boost the inventory on the chain's shelves and to improve the chain's physical facilities, the spokesman said.
With the shutdown last week of one of the company's stores in Berkeley — part of the bankruptcy proceeding, he noted — Andronico's will operate six Northern California stores: three in Berkeley and one each in Los Altos, San Anselmo and San Francisco.
The chain filed for a prepackaged Chapter 11 bankruptcy in August in anticipation of a deal with Renovo.
At the time of the filing, Renovo owned $29 million of the chain's secured debt and subsequently loaned the retailer $5 million so it could continue to operate through this month.
Renovo, which has offices in Dallas, Denver and Irvine, Calif., invests in smaller, mid-market companies through Renwood Opportunities Fund and provides equity capital for businesses facing liquidity shortfalls and profitability challenges, according to its website.
Renovo has already completed the purchase of another Bay Area company that was in bankruptcy — A.G. Ferrari Foods, a nine-store specialty chain based in San Leandro, south of here — for a reported $1.2 million. Ferrari sells imported pastas, sauces and other Italian products, with annual revenues estimated at $9 million.
The investor reportedly plans to operate the two companies separately.