Some big changes are in store for the Midwest retail landscape, as the owners of Strack & Van Til prepare to close the banner. The chain’s parent, Central Grocers Cooperative, announced on Tuesday that a majority of its stores will be sold.
"While we don't yet have a signed deal, the proposed transaction calls for 22 stores to be sold as going concerns, which means they would continue to operate and we expect the buyer would offer employment opportunities to most of the stores' current personnel," CEO Jeff Strack said in a statement to The Times of Northwest Indiana.
Strack & Van Til has sold off 22 of its stores to a currentlyunidentified buyer, and they will remain open under its new ownership. The deal also involves the closure of 9 of the chain’s Ultra Foods discount banner stores, according to Inside Indiana Business.
The Ultra Foods locations are closing from underperformance as a condition of the sale. The Times noted that these stores are all housed in the Chicago suburbs, which company executives have asserted as a crowded and competitive market.
This news comes after Strack & Van Til last made headlines when it announced the closure of five of its stores earlier this spring. The chain is a legacy in its region after 58 years of service to its communities.
“We appreciate the great impact a store closure has on associates, customers, vendors and the community, and our team is committed to minimizing that impact in every way we can,” Strack said.
Who bought the banner, and how will this shift in ownership change the Midwest region's grocery sector? Deli Market News will be sure to divulge.