Natural Products  March 11, 2015

Alfalfa’s Market raising funding for third store, eyes several possible locations

BOULDER – The owners of Alfalfa’s Market Inc., are raising money with the aim of opening a third store in the summer of 2016, eyeing possible locations in Fort Collins, Longmont and Denver.

The Boulder-based natural grocer has stores in Boulder and Louisville, the latter of which opened last summer.

The company disclosed in a regulatory filing Wednesday that it closed on more than $1.3 million in bridge note financing. The goal, chief financial officer and co-founder Barney Feinblum said, is to raise $2.5 million in bridge notes. He said the company is also looking to raise $5 million in equity funding by the end of the year. Once that is raised, the bridge note financing would likely convert to new equity.

SPONSORED CONTENT

Business Cares: March 2024

WomenGive, a program of United Way of Larimer County, was started in Larimer County in 2006 as an opportunity for women in our community to come together to help other women.

Feinblum said the funding would be used for a combination of retiring some debt, working capital and to build the new store.

“We don’t know exactly where that (new location is yet),” Feinblum said. “But what’s very encouraging for us is developers are coming to us to be anchor tenants in their developments.”

Feinblum noted that some municipalities have inquired about the company opening stores as well.

“We find it encouraging that the brand has that appeal,” Feinblum said.

Alfalfa’s was a Boulder staple in the 1980s and early 1990s before being acquired by Wild Oats in 1995. Wild Oats went public in 1996 and was acquired by Whole Foods in 2007. But the Federal Trade Commission objected to that merger, forcing Whole Foods to divest 32 Wild Oats stores.

One of those divested stores included the original Alfalfa’s location at 1651 Broadway. Feinblum and Mark Retzloff, one of the founders of the original Alfalfa’s bought that store in 2010, closed it, remodeled it and re-opened as Alfalfa’s on April 22, 2011, reviving the brand. The Louisville store opened last June as part of the redevelopment of a former Safeway-anchored shopping center.

Alfalfa’s employs 230 people, including about 60 who are part-time. Feinblum said the company is focusing its growth on Colorado. The original Alfalfa’s eventually grew to 11 stores in the state.

“We think there’s room for at least that many stores in Colorado,” Feinblum said.

Alfalfa’s went through some turmoil last year when Retzloff, who co-founded the original Alfalfa’s with Lyle Davis and Hass Hassan, was forced out as chief executive by the other three board members, Feinblum, Jimmy Searcy and Hugo van Seenus.

Searcy has served as interim CEO since then, and the company promoted John Varsames to the position of chief operating officer and added former Whole Foods executive Paul McLean as vice president of purchasing and marketing.

Feinblum said Searcy will likely serve as CEO until the company sees what happens with the fundraising.

BOULDER – The owners of Alfalfa’s Market Inc., are raising money with the aim of opening a third store in the summer of 2016, eyeing possible locations in Fort Collins, Longmont and Denver.

The Boulder-based natural grocer has stores in Boulder and Louisville, the latter of which opened last summer.

The company disclosed in a regulatory filing Wednesday that it closed on more than $1.3 million in bridge note financing. The goal, chief financial officer and co-founder Barney Feinblum said, is to raise $2.5 million in bridge notes. He said the company is also looking to raise $5 million in equity funding…

Sign up for BizWest Daily Alerts