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OKLAHOMA CITY - Homeland Holding Corp. said Tuesday it filed a joint plan of reorganization with its wholesale supplier, Associated Wholesale Grocers, Kansas City, Kan., calling for AWG to acquire substantially all of Homeland's assets.
The offer, valued at about $47 million, would bring Homeland out of Chapter 11 bankruptcy protection. It remains subject to court approval.
AWG supplies approximately 70 percent of products sold in Homeland stores. Headquartered in Kansas City, Kansas, the 76-year-old retailer-owned cooperative supplies more than 850 retail grocery stores in 10 states. AWG owns and operates a distribution center in Oklahoma City.
Under the deal, AWG would continue to operate the 44 remaining Homeland stores under their current banner. Homeland said the stores generated operational profits of $685,000 in the first quarter before reorganization expenses.