Stracks Owner Details Bankruptcy Filing

(Image courtesy of Strack & Van Til.)

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The Illinois-based parent of northwest Indiana’s Strack & Van Til chain of grocery stores has filed for Chapter 11 bankruptcy protection. Central Grocers Inc. says it plans to wind down wholesale distribution operations and "conduct an orderly sale" of the 22 remaining Strack & Van Til locations. Its Joliet distribution center is for sale.

The chain is based in Highland and its owners put Strack & Van Til stores on the market in April. Around the same time, Central Grocers announced the closing of its nine Ultra Foods branded stores, two of which are in Indiana.

In a news release, Central Grocers says it plans to sell the Strack & Van Til stores as going concerns and "anticipates entering into a sale agreement with a stalking horse bidder in the near future." It says employees are receiving pay and vendors will be paid in full for goods and services rendered after the May 4 filing date. Central Grocers Chief Executive Officer Ken Nemeth says the bankruptcy proceedings will allow for the "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."

Central Grocers says the bankruptcy filing is voluntary and it plans to file a motion to counter an involuntary bankruptcy lawsuit against the company in the U.S. Bankruptcy Court for the Northern District of Illinois.

Strack & Van Till CEO Jeff Strack says "our stores are open, and we are as focused as ever on supporting our customers and providing the legendary service that we are known for. As we move through this process, our priorities, values and commitments to our customers and our communities will not change. We thank our loyal customers for their continued support, and we thank our employees for their hard work and dedication."

You can connect to documents relating to the bankruptcy proceedings by clicking here.