VILLAGE SUPER MARKET, INC. NAMED A SUCCESSFUL BIDDER IN THE BANKRUPTCY AUCTION TO ACQUIRE CERTAIN ASSETS OF FAIRWAY
March 31 2020 - 5:46PM
On March 25, 2020, Village Super Market, Inc. (“Village” or the
“Company”) entered into a revised Asset Purchase Agreement (“APA”)
with Fairway Group Holdings Corp. and certain of its subsidiaries
(“Fairway”) to acquire certain assets, including five supermarkets,
a production distribution center (the “PDC”) and the intellectual
property of Fairway, including the names “Fairway” and “Fairway
Markets.” Four of the supermarkets are in Manhattan,
specifically the Upper West Side, Upper East Side, Kips Bay and
Chelsea locations, and a fifth store is located in Pelham,
NY. Village has agreed to pay $76.0 million for the Fairway
assets, subject to closing adjustments set forth in the APA, and to
assume certain liabilities, consisting primarily of those arising
from acquired leases. Village’s cash purchase price will be
reduced by a $2.1 million credit arising from the breakup of
Village’s initial “stalking horse” bid. The acquisition is
subject to the approval of the United States Bankruptcy Court for
the Southern District of New York at a hearing currently scheduled
for April 14, 2020 and other closing conditions set forth in the
APA.
Village Super Market operates a chain of thirty
supermarkets under the ShopRite name in New Jersey, Maryland, New
York City and eastern Pennsylvania and three specialty markets
under the Gourmet Garage name in New York City.
Forward Looking Statements
All statements, other than statements of
historical fact, included in this Press Release are or may be
considered forward-looking statements within the meaning of federal
securities law. The Company cautions the reader that there is no
assurance that actual results or business conditions will not
differ materially from future results, whether expressed, suggested
or implied by such forward-looking statements. The Company
undertakes no obligation to update forward-looking statements to
reflect developments or information obtained after the date hereof.
The following are among the principal factors that could cause
actual results to differ from the forward-looking statements:
economic conditions; competitive pressures from the Company’s
operating environment; the ability of the Company to maintain and
improve its sales and margins; the ability to attract and retain
qualified associates; the availability of new store locations; the
availability of capital; the liquidity of the Company; the success
of operating initiatives; consumer spending patterns; the impact of
changing energy prices; increased cost of goods sold, including
increased costs from the Company’s principal supplier, Wakefern;
disruptions or changes in Wakefern's operations; the results of
litigation; the results of tax examinations; the results of union
contract negotiations; competitive store openings and closings; the
rate of return on pension assets; and other factors detailed herein
and in the Company’s filings with the SEC.
Contact: |
John Van Orden, CFO |
|
(973) 467-2200 |
|
villageinvestorrelations@wakefern.com |
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