US supermarket operator Spartan Stores has announced that it has completed the sale of 17 Food Town retail grocery stores in the Toledo, Ohio and Southeast Michigan market area.
Thirteen of these stores, located in the Toledo area, were sold to grocery retailer The Kroger Co for an undisclosed sum.
Under terms of the agreements, net proceeds from the sale of the 17 stores will approximate $30m in cash. Spartan Stores intends to use the net proceeds from the transactions to reduce outstanding bank borrowings.
Spartan Stores’ president and chief executive officer, Craig C. Sturken, said: “The sales are an outcome of our strategic evaluation process announced in February and will help our efforts to restore retail profitability. We are continuing to evaluate the future of the remaining Food Town stores and expect to announce those plans shortly.
“These transactions will immediately help improve our operating cash flow and allow us to concentrate resources on our best performing grocery stores in geographic areas where we have the strongest growth potential.”