Sponsored By

Bankrupt Lucky’s Market to sell 23 stores, distribution center for $29 million

Publix, Aldi, Southeastern Grocers among 10 winning bidders in asset auction

Russell Redman

March 27, 2020

3 Min Read
Luckys Market-new store
Six Lucky's Market stores will continue to operate in Colorado, Ohio, Michigan and Missouri, the better-for-you grocery retailer said.Lucky's Market

As part of a court-supervised auction, bankrupt Lucky’s Market plans to sell 23 stores and its distribution center for about $29 million to 10 winning bidders, including its founders and Publix Super Markets, Aldi, Southeastern Grocers, Schnuck Markets and Dollar General.

Niwot, Colo.-based Lucky’s said Friday that six stores will continue to operate: North Boulder and Fort Collins, Colo.; Cleveland and Columbus, Ohio; Traverse City, Mich.; and Columbia, Mo.

Lucky’s reported on Jan. 21 that it planned to shut 32 of its 39 stores and file for Chapter 11 bankruptcy protection to facilitate the sale of its remaining locations and assets.

About a week later, the better-for-you food retailer announced stalking-horse bids from Aldi and Publix for 11 stores. And the next day, Lucky’s said it entered agreements to sell its remaining seven locations to co-founders Bo and Trish Sharon. That was followed in early February with an announcement that seven Lucky’s stores that had been earmarked for closure would be sold to Southeastern Grocers, Seabra Foods and Hitchcock’s Markets.

Bo Sharon-Trish Sharon-Luckys Market-Plantation FL

Lucky's Market founders Bo and Trish Sharon won bids for two leased stores in North Boulder and Fort Collins, Colo., that will continue to operate. In January, Lucky’s said it entered agreements to sell its remaining seven locations to the Sharons.

Under the auction results reported March 27, Publix won bids for five leased stores in Florida for $11.5 million. Locations include Naples, Neptune Beach, Clermont, South Orange (Orlando) and Ormond Beach.

Related:Lucky’s Market to sell stores to Southeastern Grocers

Hard discount grocer Aldi is slated to acquire six stores, all in Florida, for a total of $7.8 million. Those properties include one owned site in Oakland Park and five leased stores in Coral Springs, Sarasota, Vineland, Colonial Landing (Orlando) and Venice.

Also due to buy Florida Lucky’s stores is Southeastern Grocers, with successful offers for four leased locations — Gainesville, Melbourne, Fort Meyers and Lake Mary for a purchase price of $2.4 million.

Meanwhile, Lucky’s Market founders Bo and Trish Sharon, doing business as LM Acquisition Co. LLC, ended up winning bids for two leased stores in North Boulder and Fort Collins, Colo., for $1.16 million. Those Lucky’s locations will continue to operate under the banner.

The Lucky’s distribution center in Orlando, Fla., will go to Dollar General for a purchase price of $1 million.

Results of the auction are subject to a final sale hearing, scheduled for March 30. Other winning bidders include Dave’s Market for two ongoing leased stores in Cleveland and Columbus, Ohio, for $1.72 million; Seabra’s Market for a leased store in Hunter’s Creek, Fla., for $1.25 million; Schnuck Markets for an ongoing leased store in Columbia, Mo., for $860,000; Oryana Food Cooperative for an ongoing leased store in Traverse City, Mich., for $860,000; and Hitchcock’s Market for a leased store in St. Petersburg, Fla., for $275,000.

Related:Lucky’s Market reportedly closing most of its stores

Lucky’s added that a leased store in Bonita Springs and an owned property in Panama City, both in Florida, may be put up for sale in another auction.

Employment offers will be made to the approximately 500 employees at the six continuing Lucky’s Market locations, the retailer said.

“While our mandate is to maximize value, we are pleased that these stores and jobs will be preserved, particularly as they serve so many families and communities during this critical time,” Scott Moses, managing director and head of food retail and restaurant investment banking at PJ Solomon, said in an email Friday. New York-based PJ Solomon is serving as M&A investment banking adviser for Lucky’s.

Lucky’s financial position became unstable after The Kroger Co. said in early December that it would divest its stake in the grocery chain. In April 2016, Cincinnati-based Kroger announced a strategic partnership with Lucky’s that included an undisclosed equity interest.

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