Bankrupt grocery chain Lucky’s Market won court approval to use the cash of majority shareholder and secured lender Kroger Co. to continue to close or try to sell about three dozen stores, WSJ Pro Bankruptcy reported. The Niwot, Colo.-based chain filed for chapter 11 on Monday in the U.S. Bankruptcy Court in Wilmington, Del., listing about $600 million in liabilities. Kroger owns more than half of Lucky’s and is owed more than $300 million under a secured loan. Lucky’s made its debut in court Tuesday in front of Judge John Dorsey, saying that it is closing 32 stores and keeping seven locations open with the hope of selling them. It also said that rival chains Aldi Inc. and Publix Super Markets Inc. each were planning to buy about a half a dozen of their sites, subject to a court-supervised auction process. Heading into bankruptcy, Lucky’s already had an agreement with Aldi to buy certain store leases. Lucky’s also said it was completing the terms of a sale for its seven open stores, as well as another deal for other store locations.
