Marsh Supermarkets wins interim OK of cash use, store-closing sales

By Caroline Salls

Pittsburgh, May 12 – Marsh Supermarkets Holding, LLC received interim court approval to continue store-closing sales and to use the cash collateral of its senior lien agent Wells Fargo Bank, NA and its junior noteholder, according to orders filed Friday with the U.S. Bankruptcy court for the District of Delaware.

As previously reported, an analysis of store performance led to Marsh ceasing operations at 11 of its stores, planning a liquidation of and exit from 19 underperforming and/or unprofitable remaining stores in an effort to conserve resources and maximize utility and planning a Chapter 11 auction and sale process for the balance of the remaining stores.

The remaining stores are still being marketed by the company, and Marsh reserved the right to enter into a stalking horse agreement for those assets.

The company requested court approval to finish the closing sales at locations for which the sales were not completed before the bankruptcy filing date.

Marsh said in a Thursday motion that the cash collateral will be used to fund its operations while in bankruptcy.

The final cash collateral hearing is scheduled for May 30, and the final hearing on continuing the store-closing sales will be held on June 6.

The court also scheduled a hearing on approval of the bid procedures for the proposed asset sale for May 30.

Marsh, an Indianapolis-based grocery chain, filed bankruptcy on May 11. The Chapter 11 case number is 17-11066.

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