Marsh, Court OK Buyers; Liquidations Set For Unsold Stores

Posted June 15, 2017

Generative Growth LLC of Findlay has reportedly agreed to purchase 15 of the stores at a cost of $8 million.

During a Wednesday morning hearing in US bankruptcy court in DE, attorneys for the Rhode Island-based pharmacy giant said they no longer objected to the store acquisitions, after the two buyers agreed not to open pharmacies in the stores until at least January 31, 2018.

It's unclear what will happen to the remaining stores that no one offered to buy. Generative Growth II is set to spend $8 million on 15 Marsh locations across IN and Ohio.

Fresh Encounter will acquire stores in New Palestine; Marion; Indianapolis (2 stores: Fox Road and New Jersey Street); Columbus; Hartford City; Elwood; Tipton; Pendleton; Richmond and Greenberg, Ind.; as well as stores in Troy; Van Wert; Middletown and Eaton, Ohio.

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The supermarket chain said their decision to close their stores "was exclusively the product of the hard competitive environment and in no way reflects on the efforts of the great associates working in these stores".

And the deal with Kroger and Fresh Encounter isn't sealed yet.

The sales had hinged on whether the buyers would be able to reopen pharmacies in the rebranded stores. As a condition of the purchase, CVS negotiated that the Marsh stores where a pharmacy operated be precluded from operating another pharmacy for five years. CVS has filed an objection to the sale plan.

Objections to the winning bids will be heard in the DE bankruptcy court system prior to a final sale approval hearing on Thursday.