Strack & Van Til parent company liquidating $20 million in groceries

Central Grocers, a retailer-owned cooperative that served 400 independent grocers throughout Chicago, filed for Chapter 11 bankruptcy in May. The company is in the process of winding down its operations, which will result in more than 440 layoffs. It's also closed or is closing 14 Ultra Foods and Strack and Van Til stores, bringing the total number of layoffs this year to around 2,000.

HYPERAMS LLC and Tiger Group are liquidating Central Grocers' remaining inventory — an estimated $20 million "of dry grocery products, frozen foods and a limited selection of fresh meat and produce" that's been marked down by more than 50 percent off wholesale prices.

Consumers won't be able to cash in on the sale. The groceries are being sold in bulk to retailers, wholesalers and other large buyers.

“The grocery industry operates under very tight margins, and we’ve been overwhelmed by the positive response from retailers, wholesalers and close-out specialists to this limited-time opportunity at extremely low prices,” said Andy Babcock, Director of Transition Advisory Services at Tiger Group.

Tiger Group and HYPERAMS LLC are looking to unload Centralla-brand generics and name brands such as General Mills, Kraft, Stouffers, Dannon, Heinz and Pepperidge Farm.

“Through the initial phases of the sale, we and Tiger are committed to maintaining the supply chain, including offering customer service and delivery consistent with Central Grocers’ normal course of business,” HYPERAMS President Tom Pabst said. “This orderly sale of the inventory will be followed by a series of auctions of the company’s fixed assets and fleet.”