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Earth Fare going out of business

Natural/organic grocery chain to shut all stores, liquidate inventory

Russell Redman

February 3, 2020

4 Min Read
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Currently operating 50 stores, Earth Fare is seeking buyers but expects to close its locations by the end of this month.Earth Fare

Natural and organic grocer Earth Fare plans to close its doors.

The Asheville, N.C.-based chain said Monday that inventory liquidation sales, including store fixtures, will begin at all of its stores as the company seeks to sell its assets “in whole or in parts.” Employees have been notified that the stores and corporate office will be closed, according to the retailer.

Currently, Earth Fare has about 3,000 employees and operates 50 stores in 10 states, including Alabama (two), Florida (14), Georgia (three), Indiana (one), Michigan (one), North Carolina (13), Ohio (three), South Carolina (six), Tennessee (five) and Virginia (two).

A spokeswoman for Earth Fare said the stores are expected to be shut by the end of February. The company hasn’t filed for bankruptcy, she said.

"Earth Fare has been proud to serve the natural and organic grocery market, and the decision to begin the process of closing our stores was not entered into lightly. We'd like to thank our team members for their commitment and dedication to serving our customers, and our vendors and suppliers for their partnership," Earth Fare said in a statement.

Earth Fare is announcing its plans to shut down just over a year after marking the opening of its 50th store, in Charlotte, N.C., and unveiling what it called “aggressive goals for growth” during the next several years, including new locations in Florida and North Carolina. At the time, CEO Frank Scorpiniti told The Charlotte Observer that Earth Fare aimed to open another 50 stores over the next five years.

Related:Earth Fare sees sales lift from digital signage strategy

Frank Scorpiniti_Earth Fare.jpgFrank Scorpiniti has served as Earth Fare's CEO since 2014. He previously was CEO of Canadian drug chain Rexall and, before that, led the pharmacy operation at New York City drug chain Duane Reade. (Image courtesy of Earth Fare)

But in its statements on Monday, Earth Fare noted that current retail market conditions and its debt load hampered its ability to operate, despite “numerous strategic initiatives aimed at growth and expansion and enhancing the customer experience.”

“While many of these initiatives improved the business, continued challenges in the retail industry impeded the company's progress as well as its ability to refinance its debt,” the company stated. “As a result, Earth Fare is not in a financial position to continue to operate on a go-forward basis. As such, we have made the difficult but necessary decision to commence inventory liquidation sales while we continue to engage in a process to find potential suitors for our stores.”

Oak Hill Capital Partners, a New York-based private equity firm, currently holds a majority stake in Earth Fare. Oak Hill had acquired the equity interest in 2012 from Monitor Clipper Partners, which had owned Earth Fare since 2006.

Related:Earth Fare opens in Fairfax

Scorpiniti joined Earth Fare as CEO in October 2014, coming over from Canadian pharmacy chain Rexall, where he was chief executive. At Earth Fare, he took over as CEO from Jack Murphy, who had left the previous month to join Fairway Market as CEO.

Earth Fare began in 1975 as a single, health-focused store called Dinner for the Earth, located in Asheville, N.C. The natural and organic foods retailer adopted the Earth Fare banner in 1994 after expanding from a specialty store to a full-service store.

Describing itself as a healthy foods industry leader, Earth Fare embraces what it calls its “Food Philosophy,” ensuring that all products sold are free of “unacceptable” ingredients, such as added hormones, antibiotics, high-fructose corn syrup, and bleached or bromated flour, as well as with no artificial fats and trans fats, sweeteners, preservatives, colors or flavors. The chain also has a Boot List of hundreds of ingredients and chemicals that it deems harmful. In line with the focus on “clean food,” the stores feature products and programs to make it easier for shoppers to incorporate a better-for-you eating strategy into their lifestyles.

The announcement of Earth Fare’s planned liquidation comes less than two weeks after two other specialty grocers focusing on fresh, organic and natural foods filed for bankruptcy.

Reports surfaced late last month that both Lucky’s Market and Fairway Market had filed or were planning to file for bankruptcy. Then just days later, New York-based Fairway announced it had filed for Chapter 11 and planned to sell all of its 14 stores. And less than a week after that, Niwot, Colo.-based Lucky’s affirmed that it had filed for Chapter 11 and fielded bids for 11 stores from Aldi and Publix Super Markets. The next day, the chain announced that its founders submitted bids to buy seven stores. Overall, plans call for 32 of Lucky’s 39 stores to be closed.

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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