INDIANAPOLIS, Ind. — Marsh Supermarkets, headquartered in Fishers north of Indianapolis, has found two buyers for 26 of its 44 remaining stores – affiliates of The Kroger Co. and Fresh Encounter – according to a motion filed last week in Marsh’s Chapter 11 bankruptcy case.

 

Marsh sold 11 stores to Kroger subsidiary Topvalco, Inc. for $16 million. Fresh Encounter affiliate Generative Growth LLC bought another 15 stores for about $8 million. The newly acquired stores are located in central and southern Indiana, except for three Ohio locations.

Marsh Supermarkets was a reliable retailer for Red Gold tomato products, Indiana pork and local produce. Finding a buyer for the chain was a top priority for state leaders.

“I think this is a positive development. Everyone is relieved that there’s another chapter to the story. We hope they will use current employees from Marsh,” said Colt Reichart, owner of Red Gold, based in Elwood, Ind.

Red Gold already has established business relationships with both Ohio-based buyers. Fresh Encounter operates a handful of grocery store chains, including Great Scot, Community Markets and Chief. While Reichart said his company has an “exceptional” relationship with Kroger, he noted the business partnership with Marsh was built over years.

Marsh was a top buyer of the complete line of Red Gold products.

“Hopefully we’ll get to the same point. Red Gold is the No. 1 brand in Indiana,” he said. “The important thing is that someone has bought Marsh stores, and those communities will have a place to shop.”

A number of Marsh stores were the only large groceries in their communities. The remaining 18 stores that were unsold will close, and liquidation of stock has begun.

Jeanette Merritt, director of checkoff for Indiana Pork, said it is too soon to know anything about the sale of Indiana pork patties featured at the former Marsh stores, saying she has not heard from Marsh or the new buyers yet.

The acquisition of Marsh locations in Indiana allows Kroger to expand into Muncie, Zionsville and add the store along the canal in downtown Indianapolis, according to a statement released by Kroger.

“These are very desirable properties. We are pleased to have the opportunity to provide Kroger service and value to even more Hoosier shoppers. We are eager to let them see why so many people make Kroger their favorite local grocery store,” said Katie Wolfram, president of the Central Division of Kroger.

Topvalco expects the sale to close no sooner than mid-July. All stores in the sale have remained open for business.

Fresh Encounter, Inc., buyer of the three Ohio locations, spoke with an Ohio newspaper, the Journal-News: “Marsh had a great reputation for fresh food and excellent customer service, and we want to keep that going,” Julie Anderson, director of marketing for Fresh Encounter, told the paper.

She indicated current Marsh employees would be retained, calling them the “greatest asset” in the purchase. She also said that the stores would be rebranded regionally.

The purchased Ohio locations are in Middletown, Eaton and Troy. Fresh Encounter’s Indiana stores are in Greensburg, Richmond, two stores in Indianapolis, Pendleton, Tipton, Elwood, Hartford City, Columbus, Marion and New Palestine. Kroger’s 11 new stores are in Fishers, two locations in Indianapolis, two in Muncie, two in Bloomington, two in Zionsville, Brownsburg and Greenwood.

Marsh was founded in Muncie in 1931 by the late Ermal Marsh and expanded throughout Indiana and into Ohio. With increased competition, 21 stores were closed recently. Marsh filed for bankruptcy in May.

“Marsh has been a noble contender in the grocery retail arena for over 86 years. We look forward to continuing their legacy of serving the customer with the best offerings and excellent customer service, and returning the stores to a community focused, family-owned organization,” said Michael Needler Jr., CEO and president of Fresh Encounter.