C&S Wholesale Grocers Bids to Acquire Associated Wholesalers Inc
WILMINGTON, DE - In the wake of the bankruptcy filing of Associated Wholesale Inc. (AWI), Reuters is reporting that C&S Wholesale Grocers Inc. has reached an agreement with the wholesaler to acquire the majority of its assets at a court supervised auction in which C&S will be acting as the lead bidder. According to Bloomberg, AWI's White Rose unit has also filed for bankruptcy due to what Chief Restructuring Officer Douglas Booth called “compressed margins and fierce competition.”
During the announced auction, C&S will be assuming the position of the “stalking horse” or initial bidder, and will be subject to higher or stronger offers.
“The addition of AWI and White Rose would expand C&S’s footprint and enhance our significant capabilities in servicing independent grocers,” said Rick Cohen, Chairman and Chief Executive Officer for C&S.
According to Reuters, White Rose generated about $1.1 billion of annual revenue prior to 2013, making it an appealing buy for C&S if the company believes that it can turn the business around. Based on the company's statements, C&S certainly sounds confident in its ability to do this.
Among AWI's listed creditors were food giants Tyson, Kellogg, General Mills, ConAgra, Smucker, Nestle, Kraft, and Dannon. According to Bloomberg, AWI owes as much as $100 million in debt to its various creditors.
Stay tuned to AndNowUKnow for any further updates on this upcoming auction and decisions of AWI and C&S.
