CHIPPEWA FALLS — An auction date has been set for the final six stores in the Gordy’s Market grocery chain.
Attorney Michael Polsky, who has been appointed as a receiver in the case to handle the sale of the stores and assets, filed paperwork in Chippewa County Court on Tuesday, saying the auction will be at 10 a.m. Nov. 29 at the Milwaukee Athletic Club.
The six stores to be sold at the auction are the downtown Chippewa Falls, Chippewa Falls at Lake Wissota, Barron, Cornell, Chetek and Ladysmith locations.
The auction results will then be finalized at 1:30 p.m. Dec. 11 during a hearing in Chippewa County Court.
The Schafer family of Chippewa Falls, the founders of the Gordy’s chain and longtime owners, had indicated last month that it was interested in retaining those six stores, and these locations were pulled from an auction in September. At a court hearing last month, Polsky declined to say if the family would be able to retain ownership.
At the beginning of summer, the grocery chain had 26 stores. Several have closed, and most were sold at the September auction.
In his letter, Polsky said he will accept bids from “qualified bidders” through Nov. 27.
Bidders must place a money deposit in the amount of 5 percent of the purchase price, or $50,000, whichever is greater, to be included in the auction. That money must be wired to the receiver’s account to be held in escrow.
Each store will be sold as a single “lot,” and Polsky wrote in all bold letters that “bids for a portion of a lot will not be considered.” The auction will proceed in three rounds.
“Each bidder shall have 15 minutes in each round to provide the receiver with its bid,” he wrote.
“The assets will be sold on an ‘as-is, where-is’ basis with all faults, without any representation or warranties by the Gordy’s entities, the receiver or (the receiver’s law firm,)” Polsky wrote. “All sales of the assets shall be free and clear of all liens, claims and encumbrances as provided for in a court order to be entered approving the sale, with any and all liens, claims and encumbrances attaching to the proceeds of sale in the order of their priority.”
The closure of the sales will take place at Polsky’s office in Milwaukee “as soon as possible after the court’s entry of an order.”
If a successful bidder fails to close on the sale of a store, the bidder’s earnest money will be forfeited to the receiver.
On Aug. 23, food distributer SpartanNash Co. filed a lawsuit, claiming that Gordy’s Market locations across western Wisconsin owe more than $86 million. In total, more than $120 million in claims have been filed against the grocery chain, with several filed each day.
The filing deadline for proof of claims for businesses is Nov. 30.
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