The U.S. Bankruptcy Court approved, on a final basis, Southeastern Grocers’ motion for approval of procedures related to store closing sales and the assumption of the liquidation consulting agreement.
As previously reported “Indeed, before the commencement of these chapter 11 cases, the Debtors identified and commenced the wind down and liquidation of eighty-five (85) stores (the ‘Closing Stores’)….The Debtors estimate that, absent closure, the Closing Stores will collectively generate approximately $13.4 million in losses for the fiscal year 2018. Alternatively, by closing the Closing Stores, the Debtors estimate that they will realize approximately $11.7 million in savings for the remainder of the 2018 fiscal year….The Debtors also conducted an extensive prepetition and sales process to sell as many of the Debtors’ underperforming stores as possible. As a result of these efforts, the Debtors successfully negotiated and executed eight (8) lease sale transactions for the sale of thirty-nine (39) stores to certain third-party purchasers, the sale of thirty-three (33) of which remains subject to approval by the Court (the ‘Sold Stores’).”
In addition, “Store Closing Sales at the Stores began on or around March 15, 2018, and are expected to be completed by April 30, 2018…To maximize the value of the Store Closing Assets and effectuate an orderly liquidation process, the Debtors also seek authority to assume a liquidation consulting agreement dated February 20, 2018 (the ‘Liquidation Consulting Agreement’) between Southeastern Grocers, and a joint venture comprised of Hilco Merchant Resources, (‘Hilco’) and Gordon Brothers Retail Partners, (‘Gordon Brothers’ and, together with Hilco, the ‘Liquidation Consultant’). With the help of the Liquidation Consultant, the Debtors estimate that the sale of the Store Closing Assets in the Stores will yield approximately $60 million in gross proceeds.”
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