US-based supermarket chain Supervalu has signed a definitive agreement with grocery retailer Coborn’s to sell eight stores of supermarket arm Hornbacher’s.
The eight locations are located in North Dakota. Seven of them are currently operational in the Fargo-Moorhead and Grand Forks regions, and one new store is currently under development in West Fargo.
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Supervalu established the first location of Hornbacher’s as Ted’s Supervalu in Moorhead, Minnesota in 1951.
Supervalu CEO Sean Griffin said: “The sale of Hornbacher’s to Coborn’s is an ideal outcome for our associates and the Fargo-Moorhead community.
“As we previously discussed, our strategy is to focus on the wholesale business going forward, so finding a strategic buyer for Hornbacher’s with continued supply opportunity was a top priority.
“Coborn’s is a long-standing Supervalu wholesale customer and we’re excited that they will carry on the Hornbacher’s name and tradition of quality products and service.”
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By GlobalDataThe transaction is currently subject to customary closing conditions and will close before 25 December.
Following the completion, Coborn’s will continue to operate all the eight stores under Hornbacher’s banner.
The companies have not disclosed the agreement value.
In addition, Coborn’s will enter into a long-term agreement with Supervalu to serve as the primary supplier of the eight locations while Supervalu will sign an expanded supply agreement with Coborn’s. Both agreements will include minimum purchase requirements.
However, Supervalu will close the Hornbacher’s store in Grand Forks, North Dakota, which is not part of the transaction.
The supermarket chain will commence inventory liquidation for the store and will close it once the process concludes.
