Coborn’s has agreed to purchase seven Hornbacher’s locations from Supervalu, which continues to sell its retail assets to focus on wholesale.
The stores being acquired — along with one additional location in development — are in the Fargo-Moorhead area, according to a news release. The deal is expected to close before the end of the year.
“The sale of Hornbacher’s to Coborn’s is an ideal outcome for our associates and the Fargo-Moorhead community,” Supervalu CEO Sean Griffin said in the release. “As we previously discussed, our strategy is to focus on the wholesale business going forward, so finding a strategic buyer for Hornbacher’s with continued supply opportunity was a top priority. Coborn’s is a long-standing SUPERVALU wholesale customer and we’re excited that they will carry on the Hornbacher’s name and tradition of quality products and service.”
As part of the deal, Supervalu will be the primary supplier of the Hornbacher’s and will enter into an expanded supply agreement with Coborn’s. Both agreements come with minimum purchase requirements, per the release.
Before selling the chain, Supervalu had been operating eight Hornbacher’s stores. While seven of the locations were sold, the store in Grand Forks, N.D., is not part of the deal and will be closed. Inventory liquidation begins Dec. 3.