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DALLAS - Fleming Companies Inc. on Monday said it plans to sell 31 Minnesota-based Rainbow Foods stores to Roundy's Inc.
The parties have executed an asset purchase agreement and have filed it, along with a motion related to the proposed sale, with the U.S. Bankruptcy Court. The company is seeking to establish bidding procedures at its May 19, 2003 hearing before the Bankruptcy Court and to obtain a sale hearing on June 4, 2003.
If the Bankruptcy Court approves the sale to Roundy's, the transaction is expected to close in June 2003.
According to the terms of the purchase agreement, Fleming anticipates net cash proceeds comprised of $42.5 million for non-inventory assets, and approximately $40 million for inventory.
Roundy's is also expected to assume approximately $35 million of long-term capital leases, and has agreed to hire substantially all of the current store associates.
The purchase agreement is subject to Roundy's obtaining approval of the transaction from its lenders, approval by the U.S. Bankruptcy Court, Hart-Scott-Rodino approval, and closing conditions.