Chippewa Falls-based chain Gordy’s Market announced Wednesday that it will enact a financial restructure, beginning with the closing of three more stores and appointing a receiver to help with the process.
Chippewa County civil court records show that the grocery chain is allegedly $86 million in debt to SpartanNash, a Michigan-based food distributor. SpartanNash filed a civil lawsuit against Gordy’s on Wednesday.
The nominated receiver for Gordy’s is Milwaukee attorney Michael Polsky of Beck, Chaet, Bamberger & Polsky. Polsky will retain Silverman Consulting to assist with the restructuring process.
Attempts by the Herald to reach Mr. Polsky for comment were unsuccessful.
Court records showed that the $86 million owed by Gordy’s did not include attorney fees or interest.
William Jacobs, Vice President of Treasury at SpartanNash, said in the lawsuit filed, “The Gordy’s Entities have provided...a financial overview indicating that the current situation at the Gordy’s Entities is unsustainable…the liabilities of Gordy’s Parent and each of the other Gordy’s Entities exceed its assets.”
Jacobs concluded by stating that based on the information SpartanNash presented in the lawsuit, he believes the remaining Gordy’s Market stores are in danger of not being able to pay the debts owed.
SpartanNash will be represented by attorney Carla O. Andres.