INDIANAPOLIS – An objection to the sale of 26 Marsh supermarkets to two Ohio-based bidders has been thrown out, allowing the sale of the stores to move forward.
CVS filed an objection Tuesday of Marsh’s sale to Kroger subsidiary Topvalco and Generative Growth II after officials learned the two buyers plan to operate pharmacies in their newly purchased locations.
In April, Marsh sold its pharmacies to CVS and agreed that whomever the new buyer would be, could not operate pharmacies in those locations for five years.
However, Topvalco and Generative Growth II "made it clear in their bids" they want to operate pharmacies at the locations. It's listed as a non-negotiable condition to the purchase.
CVS requested to halt the sale motion “until a date that is no less than three weeks from June 14” to provide the company time to take a look at all legal issues surrounding their previous agreement with Marsh.
Filings in Delaware bankruptcy court on Wednesday indicated the sale was moving forward, throwing out the specific CVS objection.
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In the last several months, many stores closed around central Indiana, which the company said was due to poor performance and increased competition.
In early May, Marsh officials filed for Chapter 11 bankruptcy and said the remaining 44 locations could close if the company did not find a buyer.
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Topvalco plans to purchase 11 Marsh locations for $16 million, and Generative Growth II has agreed to buy 15 locations for $8 million.
The deal still has not been fully finalized, but is expected to go through.
Marsh spokesperson Thomas Mulligan said the stores that were not sold will undergo liquidation sales beginning Thursday, June 15, and continuing until inventory is sold, "most likely in early July."
There's no word how many of Marsh's remaining 2,788 part-time and full-time employees will be laid off as a result of the 18 other stores closing.
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