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MILAN, Ill. - Eagle Food Centers Inc., which owns and operates 59 supermarkets in Illinois and Iowa, announced today that it will commence a sale of substantially all of the assets of its operating units through competitive bidding procedures under Section 363 of the U.S. Bankruptcy Code.
"Since the company's voluntary Chapter 11 filing in April, management and the board of directors have been exploring various alternatives that would result in maximum recovery to our creditors and, at the same time, have the least impact on the jobs of our employees," said Eagle chairman, CEO and president Robert J. Kelly. "After careful consideration, it was determined that an evaluation of a sale of the company's stores, either individually or as a whole, may yield the optimum results on behalf of Eagle Foods' employees, customers, suppliers and creditors."
The company will also continue to develop a standalone plan of reorganization to maintain and operate Eagle Food stores. Kelly said that as part of its plan to concentrate resources on operations with the strongest potential for future growth under either scenario, Eagle Food Centers will close nine Eagle Food stores including its BOGO's store by the end of Eagle Food's fiscal second quarter. A court hearing on June 27, 2003 has been scheduled to consider the company's proposed bidding procedures and the store closing request.
Eagle Food Centers operates 58 Eagle Country Markets and one BOGO's Food and Deals.