Central Grocers files for bankruptcy
Joliet, Ill.-based Central Grocers Inc., the parent company of Strack & Van Til stores, has filed for Chapter 11 bankruptcy.
Central Grocers is working toward a sale of Strack & Van Til stores and of its distribution center in Joliet, according to a news release.
In the May 4 court filing, the company estimated it had 10,000-25,000 creditors. It estimated liabilities of $100 million-$500 million and assets in that same range.
“In light of the increasingly difficult environment for independent supermarkets and retailers, we have been working tirelessly to achieve an outcome that is in the best interests of our stakeholders,” Ken Nemeth, president and CEO, said in the release. “We are using this court-supervised sale process to provide us the time and flexibility to conduct an orderly sale of the Strack & Van Til stores while we work to sell the warehouse in Joliet and wind down our wholesale distribution operations.”
The move comes two days after The Coca-Cola Company, General Mills Inc., Mars Financial Services and Post Consumer Brands filed an involuntary bankruptcy case against Central Grocers. alleging about $1.85 million in unpaid debts to the four companies.
According to the filing by Central Grocers, the company owes Kelloggs Sales Co. more than $3 million, Kraft Foods Inc. about $2.35 million, Nestle USA nearly $2 million, and Tyson Foods Inc. more than $1 million, among others.
The company plans to file a motion to dismiss the involuntary bankruptcy case in light of its voluntary Chapter 11 filing, according to the release.
All 22 Strack & Van Til, Town & Country Market and Ultra Foods stores in Illinois and Indiana remain open, and employees are being paid.
