Chippewa Falls (WQOW) - The sale of three more Gordy's Market stores have been approved. Those stores will be purchased by the distributor that is suing Gordy's Market.
After a lengthy hearing on Friday, Chippewa County Judge James Isaacson gave approval to SpartanNash to buy stores in Arcadia, Galesville and La Crosse. The approval came over objections from Quillin's, which had also placed a bid. The final purchase price for the stores was $550,000.
SpartanNash sued Gordy's Market in August. At that time, the company claimed that, between incentives, accounts receivable and liquidated damages, Gordy's owed it over $86 million.
There is no word on whether SpartanNash will run the locations as grocery stores.
Posted: Sept. 28, 2017
Chippewa Falls (WQOW) - On Thursday, a Chippewa County judge approved the sale of the assets of 11 Gordy's Market stores over the objections of two businesses who said Gordy's owes them money.
They claim they are owed close to $600,000, but as unsecured creditors, they are unlikely to be paid, because lawyers said there likely won't be any money left after the secured creditors are paid; among the sales approved in the Chippewa Valley, the closed Gordy's stores on Hamilton and Clairemont avenues in Eau Claire, and the Chippewa Commons stores.
RELATED: Gordy's Market stores closure
News 18 spoke with a lawyer for the buyer, who would not comment on if they plan to re-open those stores.
During Thursday's hearing, Attorney James Sweet, a lawyer representing the four Schafer children, who own the Gordy's chain, told the court they support the sale.
"This means it's a very tragic circumstance for the family, for the communities, for everyone involved. We're trying to make the best of a very awful situation. And, this seemed the best route to go," Sweet said.
After the hearing, Sweet told News 18 that some of the Schafer children are negotiating to buy six of the remaining stores, including those in downtown Chippewa Falls, Lake Wissota, Chetek, Cornell, Ladysmith and Barron.
In his ruling approving the sale of 11 stores, for $2.8 million, Judge James Isaacson said the sales were appropriate to stop the financial "bleeding" of the store chain.
The sale of four other stores, including in Neillsville, Galesville, La Crosse and Arcadia, is on hold because of objections filed by some of the bidders. A hearing on that issue will be held at the end of October.
Court records indicate Gordy's Market has debts of more than $70 million, in addition to a $40 million claim filed by its main grocery supplier.
Posted Sept. 28, 2017 at 10:21 a.m.:
Milwaukee (WQOW) - Of the 26 Gordy's Markets across western Wisconsin, 15 were sold at auction Monday, September 25.
According to the receiver's report of sale that was filed with the Chippewa County Court Wednesday, there were 11 registered bidders and 39 separate bids made during seven rounds of bidding. The auction lasted from 10 a.m. to 9 p.m.
The winning bids that the receiver obtained at auction were:
Thursday morning a Chippewa County judge will be asked to approve the sale of these locations.
The following 11 locations were not sold during the auction. Three were already sold to Skogen's Foodliner, Inc., six are still in operation and the date and time of the adjourned auction is yet to be determined, and two stores were not sold: