Fleming Seeks Approval to Sell Wholesale Unit

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Fleming Seeks Approval to Sell Wholesale Unit

07/31/2003
DALLAS -- Fleming Cos. said Wednesday it didn't get any new qualifying offers for its wholesale grocery business and will ask a bankruptcy court to approve sale of the unit to C&S Wholesale Grocery.

The company said it would seek approval of the sale during a hearing in U.S. Bankruptcy Court in Delaware scheduled for Aug. 4, according to an Associated Press report. Fleming, which filed for bankruptcy protection in April, agreed to sell the wholesale grocery distribution business to privately held C&S of Brattleboro, Vt., for an estimated $400 million.

The sale was dependent on bankruptcy court approval and C&S obtaining financing. In June, Fleming, based in the Dallas suburb of Lewisville, sold its 17 Yes!Less stores in Texas and Louisiana to a California-based company. The company is exploring the possible sale of its major remaining business, distribution to convenience stores.

Fleming, which once owned more than 100 stores along with its distribution business, filed for bankruptcy shortly after cutting ties with its largest customer, Kmart Corp. Officials say the company has continued to lose customers since the bankruptcy filing in Delaware.