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Earth Fare files for Chapter 11 bankruptcy

Move comes a day after specialty grocer reported it’s shutting down

Russell Redman

February 4, 2020

2 Min Read
Earth Fare store-Cumming GA.PNG
Under Chapter 11, Earth Fare will seek buyers for its 50 stores, located in 10 states.Earth Fare

Earth Fare today filed for Chapter 11 bankruptcy protection in federal court, following an announcement yesterday that it plans to sell off its assets and go out of business.

In the Feb. 4 filing with the U.S. Bankruptcy Court in Delaware, Earth Fare reported both assets and liabilities of $100 million to $500 million. Distributor United Natural Foods Inc. (UNFI) is listed as the largest creditor, owed nearly $9.6 million. Including UNFI, four creditors have unsecured claims of $5 million or more.

The Asheville, N.C.-based natural and organic grocer said in the filing that its board of directors met Nov. 5 to explore strategic options for the company — including a restructuring, reorganization or sale — and adopted the plan to file for Chapter 11 in a meeting on Feb. 3.

“They filed this morning. It does not change plans to liquidate the stores. That will be part of the Chapter 11 process,” a spokeswoman for Earth Fare said in an email on Tuesday. The filing cites plans for “going out of business” sales and to sell “any or all of the assets of the company,” including via auction or stalking horse bidders.

On Monday morning, Earth Fare unveiled plans to close its 50 stores and corporate office and sell its assets “in whole or in parts.” Inventory liquidation sales are now under way at stores.

Related:Earth Fare going out of business

Earth Fare has approximately 3,000 employees and operates stores in 10 states, including Alabama, Florida, Georgia, Indiana, Michigan, North Carolina, Ohio, South Carolina, Tennessee and Virginia. More than half of the locations are in Florida (14) and North Carolina (13). The spokeswoman said the stores are slated to be closed by the end of this month.

According to the Chapter 11 filing, Oak Hill Capital Partners and an affiliate own more than 74% of Earth Fare. New York-based Oak Hill had acquired a majority stake in the retailer in 2012.

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

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