Albertsons has entered into a new agreement in which it will sell 71 of its owned locations for over $720 million, and in turn, lease them back from the buyer. According to a new filing made with the SEC, Albertsons expects to enter into lease agreements with the purchaser, which is operating under the name “CF Albert LLC," for an initial term of 20 years.
In the filing, a number of Albertsons-owned banners were named as sellers of the 71 locations involved in the agreement, including Vons, Safeway, Acme Markets, Jewel Food Stores, Randall’s Food & Drugs, and Dominick’s Finer Foods. However, a list of the specific properties being sold have not yet been revealed.
So, what is CF Albert LLC? Names of representatives for the company and their addresses were all redacted in the sale agreement included in the filing. CF Albert does not have a web presence that this reporter could track down, but the filing does refer to the business as a “Delaware limited liability company.” According to DelawareInc.com, a Delaware limited liability company is a business vehicle with a legal existence separate and distinct from its owners. This means its owners and managers are not personally liable for the company's debts and obligations.
The deal, expected to close before December 2, will allow Albertsons to liquidate its assets and free up cash, but for now, representatives for the company have not disclosed what it has planned for this $720 million come up.
To read more on the specifics of Albertsons’ deal, click here to read the company’s SEC filing.