A Chippewa Falls-based grocery store chain faces more than $150 million in claims for unpaid bills from suppliers, banks and former employees. The company’s stores will be on the auction block next week.
Gordy’s Market had 26 grocery stores spread across western and northwestern Wisconsin from Hayward to Arcadia.
In August, the company was sued for nearly $87 million by Minnesota-based supplier Nash-Finch Co. for failing to pay their accounts. Since then, 2,000 claims have been filed by suppliers, contractors and employees.
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Court documents show Gordy’s assets worth around $40 million, but the company has more than $157 million in liabilities. The company has gone into receivership headed by Milwaukee attorney Michael Polsky.
In better days Gordy’s employed around 1,000 people. Three Gordy’s locations in Eau Claire and Tomah are scheduled to be sold to Minnesota-based Festival Foods. Other stores are scheduled to be auctioned off in Milwaukee as early as Monday.
According to court proceedings, 17 bids have been made by potential buyers.
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