Andronico's Files For Bankruptcy, Stores To Continue Under New Owner, Company Says

After 82 years in the same family, Andronico's Community Markets will be sold to an investor group as part of a Chapter 11 bankruptcy filing, the company announced on Monday.

“This is a bittersweet moment in our history,” said CEO Bill Andronico in a statement describing the company's negotiations. “We have struggled mightily to keep going, but the combination of the economic downturn and a broken balance sheet was too heavy a burden. The good news is that this deal preserves our markets and keeps our employees working.”

Andronico's will be sold to Renovo Capital, a group that "invests in smaller, mid-market companies in North America, providing equity capital in complex situations for businesses facing liquidity short-falls and profitability challenges," according to its website. 

The grocery had its corporate headquarters in Albany until May, when it moved into vacant space in its San Francisco flagship store.

In its statement, Andronico's said its attempt to expand to Emeryville, Danville and Walnut Creek at the turn of the century is the primary source of its debt problems. Those three stores are now closed.

The market is negotiating to preserve the jobs of 400 Andronico's employees through the sale, the statement said. It will keep the name Andronico's Community Markets. Renovo "plans to invest capital to immediately stabilize the business," the store's website read. After 90 days, "additional investment capital is planned for store remodels."

Andronico's was founded  by Frank Andronico, a Greek immigrant, in 1929, according to the statement. It currently has seven locations in the Bay Area, four of which are in Berkeley.