Sponsored By

Acme Markets wins bid to buy 27 Kings, Balducci’s stores

Upscale supermarkets to join Albertsons Cos. Mid-Atlantic division

Russell Redman

October 14, 2020

3 Min Read
Kings_Food_Markets_store_NJ.jpg
Kings operates 25 specialty gourmet supermarkets, including 23 in New Jersey, one in New York and one in Connecticut. The Balducci’s chain has 10 gourmet market stores in New York, Connecticut, Maryland and Virginia.Kings

Albertsons Cos.’ Acme Markets plans to acquire 27 Kings Food Markets and Balducci’s Food Lover’s Markets for $96.4 million in cash under a bankruptcy auction.

Malvern, Pa.-based Acme said Wednesday that it expects to finalize the transaction later this fiscal year, pending customary closing conditions and regulatory and court approvals. KB US Holdings, parent of Kings and Balducci’s, put the chains up for sale in August upon filing for Chapter 11 bankruptcy protection.

At the time of its Chapter 11 filing, Parsippany, N.J.-based KB Holdings — whose majority owner is GSSG Capital Corp. — said it had accepted a $75 million stalking-horse bid for the Kings and Balducci’s stores from New York investment firm TLI Bedrock. But in an Oct. 14 bankruptcy court filing, the stalking-horse bid was designated as the backup bid.

Plans call for the upscale Kings and Balducci’s grocery stores to retain their banners and become part of Albertsons’ Mid-Atlantic division, which operates Acme and Safeway supermarkets on the East Coast. 

Balduccis-Rye Brook NY.jpgThe Balducci's stores had been acquired by Kings Food Markets in 2009. (Photo courtesy of Balducci's)

“We look forward to welcoming Kings Food Markets and Balducci’s Food Lover’s Markets and the gourmet expertise they are known for into our family,” Jim Perkins, Mid-Atlantic division president for Boise, Idaho-based Albertsons, said in a statement. “Our company has a history of managing small, differentiated chains that offer an elevated experience, like Andronicos and Haggens in the western U.S. When we leverage their team’s expertise and continue to deliver what their customers want, these stores can thrive. We are excited to add these two premium, gourmet banners to our East Coast operations and plan to continue to operate the stores as Kings Food Market and Balducci’s Food Lover’s Market, respectively.” 

Related:Parent of Kings Food Markets, Balducci’s up for sale with Chapter 11 filing

Known for its fresh and prepared foods, Kings operates 25 specialty gourmet supermarkets, including 23 in New Jersey, one in New York and one in Connecticut. The Balducci’s chain currently has nine gourmet market stores in New York, Connecticut, Maryland and Virginia, including Balducci’s Gourmet on the Go locations at Philadelphia Airport and Johns Hopkins Hospital.

KB said Wednesday that the 27 Kings and Balducci’s stores will be sold on a going concern basis to Acme. The remaining locations remain up for sale.

“We are so pleased that with this successful bid from Acme that both the Kings and Balducci’s brands will continue their proud traditions of offering the finest food and premium service for our customers for years to come,” Judy Spires, CEO of KB US Holdings, said in a statement.

Related:Kings Food Markets caters to an upscale clientele

KB had “experienced significant challenges” in the years leading up to the Chapter 11 filing, according to M. Benjamin Jones, senior managing director at Ankura Consulting Group, which the retailer engaged in November 2018 as a financial adviser to evaluate strategic options for the business. Challenges included rising competition in the grocery retail sector, low earnings and a heavy debt load, which impaired KB’s ability to invest in its stores and technology infrastructure, Jones explained. 

New York-based Ankura now serves as restructuring adviser to KB under the Chapter 11 process. KB’s advisory team also includes Proskauer Rose as legal counsel and PJ Solomon as M&A investment banking advisor. 

Acme Markets operates 164 stores in Pennsylvania, New Jersey, Delaware, New York, Connecticut and Maryland. The Kings and Balducci’s names will join Albertsons Cos.’ roster of more than 20 store banners, including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw's, Star Market, United Supermarkets, Market Street, Haggen, Lucky, Amigos and Andronico’s.

The nation’s second-largest U.S. supermarket operator, Albertsons has 2,252 retail stores, 1,726 pharmacies and 402 fuel centers in 34 states and the District of Columbia.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News

You May Also Like