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Grocer Dean & DeLuca Has Filed For Bankruptcy, Hopes To Eventually Re-Open Shuttered Stores

Courtesy of ZeroHedge View original post here.

Today in bankruptcy news that isn’t related to the coronavirus, Dean & DeLuca, the grocery chain that closed its New York stores last year, has officially filed for bankruptcy in Manhattan and now hopes to re-open some of its stores. 

The chain had been open for more than four decades and was one of the first grocers to introduce Americans to numerous international gourmets. Amidst a rising tide of other “fancy” international grocers popping up in Manhattan, the chain lost its spot at the top and eventually fell victim to lackluster sales.

The chain is seeking to restructure its debt under Chapter 11 and eventually re-open its stores. The newly filed bankruptcy petition shows that the store tried to negotiate its debt outside of bankruptcy but was unsuccessful. The chain ceased its operations in mid 2019 after running out of cash, according to Bloomberg.

In its petition to the court, the chain listed $500 million in liabilities and and assets of “no more than $50 million”. It owes its junior creditors about $275 million, which is inclusive of $250 million to its owner. 

Many other grocers in New York are now also feeling pressure, some as a result of the ongoing pandemic lockdown across the city and others simply due to the heightened competitive environment. Names like Fairway Group Holdings and Lucky’s Market are both also seeking Chapter 11 protection. 

Meanwhile, Dean & DeLuca has just one employee left, while some of its franchise locations continue to stay open. Pace Development Corp., the owner of the chain, defaulted on about $315 million in total debt last year. 


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