SAN LEANDRO, Calif. — The same investment company bidding to take Andronico's Community Markets out of Chapter 11 bankruptcy is close to acquiring A.G. Ferrari Foods, a nine-store specialty chain here in the Bay Area, according to reports.
Renovo Capital would operate the two companies separately, the reports indicated, though it's possible Andronico's could offer some of Ferrari's imported pastas, sauces and other Italian products in its stores if the two companies have common ownership.
Executives at Renovo and Ferrari could not be reached for comment last week.
Renovo — with offices in Dallas, Denver and Irvine, Calif. — has already gained approval from the U.S. Bankruptcy Court to purchase A.G. Ferrari for $1.2 million. Ferrari's annual revenues are estimated at $9 million.
Andronico's operates seven Bay Area supermarkets with annual sales of about $120 million. An auction for the stores is scheduled for Oct. 13.
Renovo's bid of $20 million is expected to be the highest at the auction, though other bids will be accepted, the reports said.
Renovo already owns $29 million of Andronico's secured debt and has loaned the company $5 million to enable it to operate through mid-October, a chain spokesman told SN. At the time Andronico's filed for Chapter 11 in late August, the spokesman told SN it was a prepackaged bankruptcy that anticipated a sale of all assets to Renovo pending a full audit.