Marsh Supermarkets files for Chapter 11 bankruptcy protection
Marsh Supermarkets, LLC, today announced that it has filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware, a step, according to a press release, the company has taken to enable its business operations to continue normally as it seeks a buyer for all or part of the 86-year-old grocery store chain.
All of the Company’s 44 locations will continue normal operations throughout this process.
“While today’s decision was extremely difficult, we believe this action is necessary to preserve the value of the business as we seek a sale,” stated Chief Executive Officer Tom O’Boyle in the release. “After reviewing every alternative, we concluded that Chapter 11 clearly provides the most effective and efficient means to ensure the best recovery for the Company’s stakeholders.”
The Company has retained Peter J. Solomon Company as investment bank to market its assets.
The Chapter 11 filing permits daily operations to continue without interruption. The stores will remain open and serving customers, employees will continue to receive their usual salary and benefits, and goods and services purchased by the Company, after the May 11, 2017 filing date, will be paid for in the ordinary course of business.
“The message is that Marsh is still moving forward with its plan to find a buyer or new investor to keep the stores open,” stated spokesman Tom Mulligan.