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MILAN, Ill. - Milan, Ill.-based Eagle Food Centers Inc., which owns and operates supermarkets in Illinois and Iowa, said on Wednesday that it has signed two separate purchase agreements with Hy-Vee and J.B. Sullivan Inc. for the assets of four of its stores.
Hy-Vee signed an agreement to purchase certain assets related to stores in Dubuque, Iowa; Bettendorf, Iowa; and Moline, Ill., including the buildings and land of the Dubuque and Bettendorf stores, all for approximately $10.83 million in cash.
Under a separate agreement, J.B. Sullivan Inc. signed an agreement to purchase certain assets of the store in Rochelle, Ill., for $800,000 plus an amount to be determined for inventory.
Both agreements are subject to bankruptcy court approval. A court hearing has been scheduled for Aug. 21, 2003 to consider the sale of assets.
"The company believes that under the new owners, these stores will be able to capitalize on its individual strengths as well as have greater access to financial resources necessary to continue to prosper and grow," said Robert J. Kelly, Eagle chairman and CEO.
The deadline for submitting bids for all other assets in the competitive bid process being conducted under section 363 of the U.S. Bankruptcy Code has been extended to Aug. 18, 2003, Eagle Foods said. The auction of its other assets will be conducted in Chicago on Aug. 20, 2003, and a hearing to confirm results of the auction will be held before the U.S. Bankruptcy Court on Sept. 11, 2003.