Secures Commitment for $20 million in Debtor-in-Possession Financing
Voluntarily Commences Chapter 11 Proceedings in the U.S. Bankruptcy Court for the Southern District of New York to Facilitate Sale
Kings Food Markets and Balducci's Food Lover's Market to Operate Business as Usual During Sale Process
PARSIPPANY, N.J., Aug. 23, 2020 /PRNewswire/ -- KB US Holdings, Inc. ("KB or the Company"), parent company of the Kings Food Markets and Balducci's Food Lover's Market subsidiary banners, today announced it has accepted a stalking horse bid from TLI Bedrock to purchase the Company for $75 million. To facilitate an orderly sale, KB and its subsidiaries have commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of New York (the "Court").
"We are pleased to be moving forward with a sale so we can position Kings and Balducci's for even greater long-term success. During this COVID crisis, our Associates and communities have demonstrated not only the viability but absolute necessity of our markets in their communities. Our sales and service have never been stronger; we are confident we will emerge from this process without missing a beat, well-positioned for future stability and success," said Judith Spires, CEO of KB US Holdings, Inc.
In conjunction with the sale process, KB has obtained a commitment for approximately $20 million in debtor-in-possession ("DIP") financing from its existing secured lender. Upon Court approval, the new financing, combined with cash generated from the Company's ongoing operations, will be used to support the business throughout the sale process. KB has sufficient liquidity to meet its go-forward business obligations and will operate its business as usual and pay its business partners for goods and services provided on or after August 23, 2020, the Chapter 11 filing date.
As part of the Chapter 11 filing, the Company has filed a number of customary "first day" motions seeking authorization to maintain its operations during the court-supervised process, including authority to continue payment of employee wages and benefits, as well as post-petition obligations to its vendor community.
As part of the process, higher and better bids will be solicited, following the approval of bidding procedures under Section 363 of the U.S. Bankruptcy Code.
For additional information including access to Court filings and other documents related to the court-supervised process, please contact Prime Clerk.
About KB US Holdings
KB US Holdings Inc. is the parent company of King Food Markets and Balducci's Food Lover's Market.
About Kings Food Markets
For more than eighty years Kings has been rated one of the finest food stores to serve New Jersey, Long Island and Connecticut. Long before the national trend led other grocers to "local" and "organic," Kings understood that their clientele, located in many of the finest towns in America, cared about freshness, sustainability, quality and the provenance of their food. From the freshest produce and cheeses, to the finest meats, poultry and fish, the in-store experience is enhanced by Kings' associates who pride themselves on customer service. Kings is based in Parsippany, N.J., with twenty-five stores serving the region. For more information, visit kingsfoodmarkets.com or follow Kings on Facebook (facebook.com/kingsfoodmarkets) and Instagram (instagram.com/kingsfoodmarket).
About Balducci's Food Lover's Market
What began in 1916 as a small vegetable pushcart in the heart of New York City, Balducci's became, over its 104-year history, America's leading gourmet specialty food shop. Offering the finest foods– cheeses and meats, fish, fresh produce and grocery items from the exotic to the most luxurious, Balducci's prides itself on presenting not just the best brands from every corner of the globe, but a gold standard private label too. Balducci's has an executive chef cooking in every market with catering available as well. Balducci's markets are located in New York, Connecticut, Maryland, and Virginia. For more information, visit Balduccis.com. Follow Balducci's on Facebook (facebook.com/balduccisfoodloversmarket) and Instagram (instagram.com/balduccismarket).
SOURCE KB US Holdings, Inc.