Bankrupt retailer Marsh Supermarkets to sell remaining assets
American retail food chain Marsh Supermarkets is planning to sell its remaining intellectual property assets, as well as grocery and drugstore alcohol beverage permits.
The retailer filed for bankruptcy protection under Chapter 11 of the US Bankruptcy Code in the District of Delaware in May this year.
Since then, the company sold most of its assets under the supervision of the court and closed all of its stores by mid-July.
The intellectual property assets under sale consideration include registered marks and/or designs such as Marsh, Marsh Hometown Market, O'Malia's, Main Street Market, and Experts in Fresh.
Marsh Supermarkets legal affairs vice-president Ben Habegger said: "The alcohol beverage permits include grocery and/or drug store permits in approximately 25 Indiana and Ohio counties.
"We have had numerous parties contact us about these different assets and we are now ready to dispose of them."
According to the company, the permits are region-specific and their transfer is conditional on approvals from state and local bodies.
In the court-monitored auction process, The Kroger’s subsidiary Topvalco won the bid for 11 Marsh stores, while Generative Growth II won the rights to own 15 stores.
The bankruptcy decision was attributed to growing competition in the grocery sector, which led to declining profits amidst price wars.
At the time of filing, Marsh Supermarkets CEO Tom O'Boyle said: "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.
"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."