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KIRKLAND, Wash - Community-based independent Larry's Markets yesterday agreed to sell five of its six stores to LM Acquisition Partners LLC for $5.5 million.
Michael Teel, principal at LM, is a former president and c.e.o. of Raley's, which was founded by his grandfather.
According to published reports, LM plans to continue operating the stores under the Larry's Markets banner, which is known for its fresh food and great service, though the company had fallen into hard times.
"Larry's has excellent store locations, dedicated employees and a loyal customer base," Michael Ashker, principal with LM, said in a statement. "Their real challenge has been undercapitalization, which in turn caused them to fall behind the curve. We plan to reinvent, revitalize and eventually regain the position of prominence that Larry's Markets once held in the local community. Larry's is all about Seattle, and through investment and lots of hard work we are determined to make Larry's the local favorite again."
The sale includes its five stores in Seattle and the Eastside, and its catering operation. The Kirkland-based grocer is still negotiating with an undiclosed buyer for its Tukwila store.
Larry's filed for Chapter 11 bankruptcy protection in May, listing $12.6 million in assets and $21.5 million in debt. The company said it had between 200 and 1,000 creditors, listing the largest unsecured creditors as Sysco Food Services, United Natural Foods, Service Paper, the state Department of Revenue and Draper Valley Farms.