KB US Holdings CEO Judith Spires believes that the company's impending sale to TLI Bedrock will "position Kings and Balducci’s for even greater long-term success.”
KB US Holdings Inc., the parent company of the Kings Food Markets and Balducci’s Food Lover’s Market banners, has accepted a stalking horse bid from New York-based venture capital firm TLI Bedrock to purchase the company for $75 million in the next 60 days. To facilitate an orderly sale, KB and its subsidiaries have begun voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of New York.
“We are pleased to be moving forward with a sale so we can position Kings and Balducci’s for even greater long-term success,” noted Judith Spires, CEO of New Castle, Delaware-based KB. “During this COVID crisis, our associates and communities have demonstrated not only the viability but absolute necessity of our markets in their communities. Our sales and service have never been stronger; we are confident we will emerge from this process without missing a beat, well positioned for future stability and success.”
Along with the sale, KB has obtained a commitment for about $20 million in debtor-in-possession financing from its existing secured lender. Upon court approval, the new financing, together with cash generated from the company’s continuing operations, will support the business throughout the sale process. KB has enough liquidity to meet its go-forward business obligations and will operate its business as usual.