Lucky’s Longmont landlord files objection in bankruptcy case

LONGMONT — The owner of the Lucky’s Market building in Longmont has filed an objection to the Niwot-based grocery chain’s bankruptcy petition, seeking to block Lucky’s from eschewing its lease obligations.

Landlord Blackfox Parkway Associates LLC, an affiliate of local developer Richard Groves’ real estate firm Actis LLC, wants to prohibit Lucky’s from removing furniture, fixtures and equipment from the store at 700 Ken Pratt Blvd.

Lucky’s “has defaulted under the terms of the lease” the company signed with Blackfox in 2012, according to court documents filed Tuesday in U.S. Bankruptcy Court in Delaware. 

According to the objection, the lease stipulates that “no collateral shall be removed from the premises without the landlord’s prior written consent until all of tenants’ obligations are fully satisfied. As a result, Blackfox hereby objects to the removal of any fixtures from the premises.”

The suit does not specify how much back or future rent Lucky’s owes, but does seek a hearing in hopes of securing a court order that would prevent Lucky’s “from removing any and all fixtures from the premises.”

Blackfox is represented by law firms Bielli & Klauder LLC and McManimon, Scotland & Baumann LLC. Neither the attorneys nor Groves responded to requests from BizWest for comment Wednesday. 

An exhibit filed along with the objection shows that Lucky’s was contracted to pay annual per-square-foot rents of $11 and $18.37 for the roughly 26,000-square-foot retail space. The rate increased periodically as the lease, which is signed by Lucky’s founder Bo Sharon, extended beyond its initial 5-year term. 

Lucky’s filed for Chapter 11 bankruptcy protection late last month, soon after Kroger Co. (NYSE: KR) announced that it would divest its ownership stake in the company. As a result, Lucky’s began the process of closing dozens of store locations across the country. 

In the roughly two weeks since the closure announcements, buyers for certain Lucky’s store locations have begun to emerge. 

LM Acquisition Co. LLC, an entity owned by Lucky’s founders Bo and Trish Sharon, bid to buy locations in north Boulder, Fort Collins, Traverse City, Michigan; Cleveland and Columbus, Ohio; Columbia, Missouri; and Melbourne, Florida. That agreement was later amended to drop plans to buy the Melbourne store, which Lucky’s now plans to sell to Southeastern Grocers Inc.

SEG, which operates grocery store brands in the South such as Winn-Dixie and Bi-Lo, has also agreed to buy Florida stores in Naples, Fort Myers, Gainesville and Lake Mary.

Aldi has bid to purchase stores in Coral Springs, Orlando, Venice, Sarasota and Fort Lauderdale, Florida.

Seabra Foods XIV Inc. has entered into an agreement to buy the lease of a location in Hunters Creek, Florida (Orlando), and Hitchcock’s Markets plans to take over the St. Petersburg, Florida, Lucky’s store. 

Publix Super Markets Inc. is bidding to buy stores in Clermont, Naples, Neptune Beach, Orlando and Ormond Beach, Florida.

The Longmont Lucky’s location subject to the objection by Blackfox Parkway Associates LLC has not been included in any of these proposed deals, which must be approved by the bankruptcy court before they’re finalized. 

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