A definitive agreement was reached this week that UNFI subsidiary SuperValu will sell seven Hornbacher’s stores, as well as one currently under development in West Fargo, North Dakota, to Coborn’s Inc. The Hornbacher's store in Grand Forks, ND, is not included in the sale to Coborn's and will still close. Liquidation will begin at the store on Monday, December 3, and will close as the liquidation of inventory is complete.
SuperValu CEO Sean Griffin commented, "As we previously discussed, our strategy is to focus on the wholesale business going forward, so finding a strategic buyer for Hornbacher's with continued supply opportunity was a top priority. Coborn's is a long-standing SuperValu wholesale customer and we're excited that they will carry on the Hornbacher's name and tradition of quality products and service."
Details of the sale include the stipulation that Coborn’s plans to retain the Hornbacher name and will enter a long-term agreement to utilize SuperValu as the primary supplier of all Hornbacher locations. Coborn’s will also enter into an extended supply relationship with SuperValu, and both of the supply agreements will have minimum purchase requirements that are yet to be determined.
Anne Dament, SuperValu EVP, Retail, Marketing and Private Brands expressed her appreciation of “the tremendous service of our associates and their unwavering dedication to our customers through the years." She continued, "I know the store teams and staff will do an amazing job supporting Coborn's and continuing to make Hornbacher's a popular choice for the local community going forward."
The deal is expected to close on Christmas day of this year, and Deli Market News will continue to keep you updated with the latest details of the sale and supply agreements as they are made known.