Bruno’s sells 56 stores in auction to Southern Family Markets

New York City Bankrupt Bruno’s Supermarkets said Thursday it signed a $45.8 million agreement to sell 56 of its stores to Southern Family Markets. The chain’s assets were sold Wednesday at auction.

Southern Family will purchase 31 of the locations on a “going concern” basis and buy the remaining 25 for liquidation. The bankruptcy court is set to approve the sale on Monday.

“I am pleased that we were able to come to an agreement with Southern Family that not only preserves jobs at our store locations but also delivers more value to our creditors than other potential outcomes would,” said Jim Grady, chief restructuring officer for Bruno’s, in a prepared statement.

Southern Family Markets is owned by C&S Wholesale Grocers, a New Hampshire-based wholesale distributor to Bruno’s. The grocery chain had purchased 60 Bruno’s stores in 2005 and a distribution facility in Birmingham, Ala.