Lucky’s receives interim approval of store sales, cash collateral use

By Caroline Salls

Pittsburgh, Jan. 28 – Lucky’s Market Parent Co., LLC obtained interim court approval to conduct store-closing sales and to use the cash collateral of its pre-bankruptcy secured lender, according to orders filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

Lucky’s said it will hold closing sales in connection with the liquidation of 32 of its stores.

In connection with the store-closing sales, the company entered into a liquidation consulting agreement with Great American Global Partners, LLC.

Going-out-of-business sales at the 32 closing locations began on Jan. 22 and are expected to run through Feb. 29.

The closing sales are expected to yield $1.4 million in gross proceeds. Great American will receive a fee of 15% of the gross proceeds.

As previously reported, Lucky’s said the cash collateral will be used to fund its operations while in bankruptcy. In addition, Lucky’s said access to the cash collateral will allow it to retain employees to continue the liquidation of some of its stores and pursue sales processes.

The final hearing on both matters is scheduled for Feb. 26.

Lucky’s is a Niwot, Colo.-based supermarket operator. The company filed bankruptcy on Jan. 27 under Chapter 11 case number 20-10166.

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