Business & Real Estate
- Published on Wednesday, 31 August 2011 01:00
- Written by Los Altos Town Crier
San Francisco-based supermarket chain Andronico’s Community Markets, a mainstay at Rancho Shopping Center in Los Altos, filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court Aug. 22. Negotiations are under way to sell the company to a venture-capital firm.
A store spokesman said the local store – and six other Bay Area locations – will remain open and retain the current staff in the interim.
“Customers will see more well-stocked shelves,” said Adam Alberti, an Andronico’s spokesman.
The bankruptcy filing, a result of debt from expansion nearly a decade ago, should allow the 82-year-old company to free up capital.
Alberti said if the sale to Renovo Capital LLC, which specializes in businesses with liquidity problems, is successful, the firm may re-evaluate its business model.
“This is a bittersweet moment in our history,” said Bill Andronico, Andronico’s CEO, in a statement. “We have struggled mightily to keep going, but the combination of the economic downturn and a broken balance sheet was too heavy a burden.”
– Elliott Burr