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Lucky’s Market, a specialty grocery chain that is majority-owned by Kroger Co., filed for chapter 11 protection Monday with plans to sell at least some of its stores to Aldi Inc. and Publix Super Markets Inc. at a bankruptcy court auction, WSJ Pro Bankruptcy reported. The Niwot, Colo.-based chain, which filed for bankruptcy in U.S. Bankruptcy Court in Wilmington, Del., listing about $600 million in liabilities, is keeping seven stores open with the hopes of selling them. The grocer said that it has received indications of interest for the sale of furniture, fixtures and equipment, and the transfer of leases for 26 stores to potential purchasers. It said that it has signed asset-purchase agreements with Aldi for five leased stores and one owned property, and with Publix for five leased stores. The deals are subject to higher bids and court approval. Aldi, which opened its first namesake store in Florida in 2008, said it is in talks to buy several Lucky’s locations in Florida as part of an expansion in Florida this year. Lucky’s has begun closing 32 stores, a process it expects to continue over three weeks. The stores slated to close were expected to lose about $30 million in fiscal 2020, Lucky’s said. Store closing sales began last week and will continue until the end of February, at which time Lucky’s said it would leave the store. The company has 3,015 full- and part-time employees in 10 states.

The operator of the Village Inn and Bakers Square restaurant chains has filed for bankruptcy after years of losses as it faces ongoing pressure from new casual dining brands and larger competitors, the Wall Street Journal reported. Restaurant operator American Blue Ribbon Holdings LLC filed for chapter 11 protection yesterday in the U.S. Bankruptcy Court in Wilmington, Del. The bankruptcy filing comes after Blue Ribbon said that it closed 33 underperforming restaurant locations and laid off about 1,100 employees. The Nashville, Tenn.-based company’s chapter 11 filing follows the bankruptcies of several family-friendly and casual-dining chains over the last several months including Marie Callender’s and Houlihan’s Restaurant + Bar. Blue Ribbon said that it still runs 97 restaurants in 13 states and franchises another 84 Village Inn outlets. At the time of the chapter 11 filing, Blue Ribbon said it employed about 1,500 full-time workers and more than 3,000 part-time workers.

La Senza, the Canadian brand that L Brands sold to a private equity firm last year, is facing an uncertain future, ChainStoreAge.com reported. MGF Sourcing US, an apparel and footwear manufacturer, and two other third-party creditors have filed an involuntary chapter 7 bankruptcy petition in Delaware against the lingerie brand. The suit contends that La Senza has not paid its debts during the past year, which amount to an estimated $42 million for goods that have been shipped. L Brands, the parent company of Victoria’s Secret, agreed to sell La Senza to an affiliate of private equity firm Regent LP at the end of 2018. At that time, there were some 126 La Senza company-owned stores in the U.S. and Canada. According to the company’s website, there are more than 340 La Senza stores around the world. 

Private-equity-owned gastrobar Bar Louie has filed for chapter 11 bankruptcy protection after closing 38 restaurants and arranging to sell its remaining locations to the chain’s lenders, WSJ Pro Bankruptcy reported. Bar Louie’s corporate parent, BL Restaurants Holding LLC, and three affiliates filed for chapter 11 yesterday in the U.S. Bankruptcy Court in Wilmington, Del., after facing increased competition and declining sales. Slumping sales cut into funds for much-needed restaurant refreshes and equipment modernization, according to Howard Meitiner, Bar Louie’s restructuring chief. The resulting “inconsistent brand experience, coupled with increased competition and the general decline in customer traffic visiting traditional shopping locations and malls,” prompted owner Sun Capital Partners Inc. to close 38 unprofitable Bar Louie restaurants immediately before Monday’s bankruptcy filing. The Addison, Texas-based company has put its remaining corporate-owned restaurants, about 72 in all, up for sale with its lenders agreeing to serve as a stalking horse, or lead bidder, in a bankruptcy sale, subject to higher and better offers. The lenders have agreed to acquire the restaurant’s assets with a credit bid of $82.5 million, court documents show.

Greeting card and stationery chain Papyrus is closing its stores in another blow to the ailing industry, USA TODAY reported. Most of the 254 closings will take place over four to six weeks, said Dominique Schurman, CEO of Papyrus parent company Schurman Retail Group, in a statement Tuesday. Founded by Marcel and Margrit Schurman in 1950, Goodlettsville, Tenn.-based Schurman has about 1,400 employees at its stores. The retail group yesterday filed for chapter 11 bankruptcy protection. Court records show of the 254 stores, 178 are located in 27 states and Washington D.C. and the company has 1,000 U.S. employees. The other stores are in Canada. The Papyrus website advertised 20 percent to 40 percent off all items yesterday and said all sales were final. Earlier in the week, the discount was 20 percent off full-priced items.

Fairway Market, the iconic New York City grocery chain, filed for bankruptcy protection with a proposal to sell its Manhattan stores to the Village Super Market Inc., a member of the Wakefern Food Corp. cooperative, WSJ Pro Bankruptcy reported. Village Super Market, which operates stores under the ShopRite and Gourmet Garage banners, is offering $70 million for Fairway’s five New York supermarkets and its distribution center, Fairway said yesterday. “If we are successful in our bid, we are committed to keeping Fairway, including its name, unique product selection and value, a part of this community,” said Robert Sumas, Chief Executive of Village Super Market. Fairway has struggled to stay afloat under heavy competition from other grocery stores at a time when brick-and-mortar retail is being squeezed by online shopping. In court filings, the company also blamed high labor and pension costs for some of its financial straits. The company’s cash dwindled to $1 million by the time it filed for bankruptcy this morning, according to court papers.

Fitch Ratings research found that secured creditors are recovering all or most of their investments when retailers file for bankruptcy protection, even as nearly half these companies don’t survive with a physical presence, the Wall Street Journal reported. Among large retail and supermarket chains that filed for bankruptcy protection over the past 15 years, 45 percent closed all of their stores, the ratings firm said in a new report. Fitch found that the bankruptcies of 25 out of 55 retail and supermarket companies ended in liquidations. High debt balances and lease and interest payments are some of the headwinds driving retailers into bankruptcy, Fitch said. They can also suffer from insufficient investments in operations and problems with cash flows and liquidity. At the same time, some troubled big retailers had a hard time accessing trade credit, such as Sears Holdings Corp., Toys “R” Us Inc. and Gordmans Stores Inc. Inventory suppliers demanded cash on delivery, cash in advance or a letter of credit to guarantee payment for goods.

Fashion retailer Express plans to close 91 stores as part of a "fleet rationalization" after a sales slump during the holidays, USA TODAY reported. The company said yesterday that it will close 31 stores by the end of January, another 35 by the end of January 2021 and the rest by 2022. The company also recently closed nine stores for a total of 100 overall. Express had 411 primarily mall-based retail stores and 215 outlet stores as of Nov. 2, according to a public filing. With a new CEO on board since May, Express said that it has been devising a turnaround strategy. That plan, revealed yesterday, includes an overhaul for the company's loyalty program this fall, "inventory optimization," curated fashion choices and $80 million in cost cuts, including previously announced plans to cut 10 percent of the jobs at its Columbus, Ohio, headquarters and New York design studio.