KB US Holdings Inc., the parent company of Parsippany-based Kings Food Markets and Balducci’s Food Lover’s Market subsidiary banners, on Monday said it accepted a stalking horse bid from TLI Bedrock to purchase the company for $75 million.
KB and its subsidiaries began voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of New York to move things along, and expect the sale to close in the next 60 days.
“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, chief executive officer of KB US Holdings.
Kings at Dels Village Shopping Center, 115 Hawkins Place, Boonton. – CUSHMAN & WAKEFIELD
KB secured a commitment for $20 million in debtor-in-possession 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.
The region’s 25 Kings Food Markets and Balducci’s Food Lover’s Markets will operate as business as usual during the sale process.
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.
Proskauer Rose LLP is serving as legal counsel, Ankura Consulting Group is serving as restructuring advisor and PJ Solomon is serving as investment banker to KB US Holdings Inc.
