Wisconsin Ag Connection - Gordy's Market to Retain Control of Six Store Locations

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Gordy's Market to Retain Control of Six Store Locations
Wisconsin Ag Connection - 12/12/2017

The owners of the Gordy's Market grocery store chain will continue to operate six of its locations after one of their suppliers purchased the assets of the properties in a receivership auction. Attorney Michael Polsky confirmed on Monday that the supermarkets--located in Chippewa Falls, Lake Wissota, Cornell, Chetek, Ladysmith and Barron--are expected to be sold to Nash Finch later this week for nearly $20 million. The move will help keep the stores open and retain the 300 employees who are currently working at those locations.

Nash Finch submitted the highest bid for the six properties during a public auction on Thursday. They are the same company that filed a lawsuit against Gordy's last summer for $86 million for defaulting on its payments for inventory it supplied to the supermarket.

Gordy's has been owned by the Schafer family for the past 51 years. As part of the receivership agreement, the family will operate the locations, but had much of its other debts forgiven as part of a court settlement.

At its peak, Gordy's operated 26 full grocery stores, but has since closed or divested many of those locations after running into financial difficulty.

The western Wisconsin grocery chain has been in receivership since August.

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