Piggly Wiggly owner seeking approval to liquidate, dissolve

Greenbax Enterprises, the privately owned parent company of Piggly Wiggly, is seeking approval from shareholders to sell its retail and wholesale grocery businesses by the end of the year and dissolve the company entirely within three years.

Greenbax has an employee stock option plan and currently 82 percent of the shares are held by employees of a trust, reported The Post and Courier.

The company needs two-thirds of its shareholders to approve the deal and all votes are due by 5 p.m. on Oct. 15.

A company spokeswoman, Christy Boudolf, told The Post and Courier that the liquidation notice "is not intended for the public at this time. It is our position that it should not be published or made public until the pending transaction is completed."

Greenbax is proposing to sell all remaining wholesale operation to C&S Wholesale Grocers for $9.3 million and to sell its 19 remaining grocery stores to independent operators. Just last month, Harris Teeter agreed to buy six Piggly Wiggly grocery stores in the Charleston, South Carolina area, and Bi-Lo said it was buying 22 stores from Piggly Wiggly, 16 in South Carolina and six in Georgia.

The company is expecting to get about $6.1 million in proceeds from the sales. Employees with stock would receive $55 per share. And some senior executives will split $700,000 if they agree not to work for a competitor for at least four years.

The sale of the wholesale business is expected to close by Oct. 20. C&S currently supplies groceries to Piggly Wiggly since the chain's distribution centers closed a year ago.

The decision to dissolve is a turn of events from an announcement this spring that Piggly Wiggly would make its push back into the Chicago area, starting with a former Dominick's location.

For more:
-See this The Post and Courier article

Related stories:
Safeway stock rallies on buyout rumors; debt concerns rise
Investors happy about Safeway shedding Dominick's
Safeway Canada sells out to Sobey's for $5.7 billion
Whole Foods confirms plan to buy 7 former Dominick's stores in Chicago
Safeway will pay $600K for pollution violations