Aldi emerges as buyer for six Florida Lucky’s stores

NIWOT — Details of Lucky’s Markets financial struggles are illuminated in bankruptcy documents, which indicate that some of the company’s store locations could be sold to German grocery chain Aldi.
The bankruptcy, filed Monday in U.S. Bankruptcy Court in Delaware, said the company has “received indications of interest for the sale of [furniture, fixtures, and equipment] and transfer of leases for approximately 26 stores to third-party purchasers.”

Court documents show that Lucky’s also has entered into a preliminary sales agreement to offload six store locations — all in Florida — to Aldi.
“After careful deliberation and a thorough review of strategic and financial alternatives, the company has decided to voluntarily file for Chapter 11 protection to facilitate the sale of its remaining assets and has signed an Asset Purchase Agreement with ALDI for five leased store properties and the purchase of one owned property,” a Lucky’s news release said. “The company still plans to cease operations in the 32 identified locations in the coming weeks and is currently running sales for its customers in those stores.”
Lucky’s announced last week that it would close 32 of its 39 locations, including in Longmont and south Boulder. Seven stores, the company said, would remain open. Among those, which court documents refer to as “operating stores,” are north Boulder and Fort Collins.
However, court documents indicate that Lucky’s intends to sell off those operating stores.
Lucky’s is “finalizing the terms of a sale of the operating stores, which will be subject to a bidding procedures motion and approval by the court as well,” according to a bankruptcy filing document.
Last week, Lucky’s filed a closure and layoffs notice with Colorado’s Department of Labor and Employment for north Boulder grocery store location and its adjacent cafe and bake house. Those facilities employ a total of 98 workers.
Despite that filing, a Lucky’s official said the Fort Collins and north Boulder locations will remain open.
New York-based investment banking firm PJ Solomon is assisting Lucky’s in the Aldi deal, Polsinelli is serving as the company’s legal counsel, and Alvarez & Marsal is serving as the company’s restructuring adviser.