Marsh Supermarkets files bankruptcy, to close without buyer, partner

<p>Marsh stores in Indiana and Western Ohio announced that all 44 of its remaining stores could be closed down&nbsp;in the next 60 days or earlier if the company is unsuccessful in its efforts to find a buyer or business partner. <em>Reagan Allen // DN</em></p>

Marsh stores in Indiana and Western Ohio announced that all 44 of its remaining stores could be closed down in the next 60 days or earlier if the company is unsuccessful in its efforts to find a buyer or business partner. Reagan Allen // DN

Students may have to find a different grocery store to shop at in the near future after Marsh Supermarkets, a grocery chain founded in Muncie in 1931 with stores in Indiana and Western Ohio, announced that all 44 of its remaining stores could be closed down.

This includes the two locations near campus on 1500 W McGalliard Rd and 715 S Tillotson Ave.

Now the company has filed for Chapter 11 bankruptcy protection stating that it was a necessary move to keep the supermarkets open while it continues its search for a buyer.

"While today's decision was extremely difficult, we believe this action is necessary to preserve the value of the business as we seek a sale," Marsh Chief Executive Officer Tom O'Boyle said in a statement. "After reviewing every alternative, we concluded that Chapter 11 clearly provides the most effective and efficient means to ensure the best recovery for the company's stakeholders."

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Thomas Mulligan, a spokesperson for Marsh Supermarkets, told the Daily News that the company hired the investment-banking firm of Peter J. Solomon Company to seek out a buyer or business partner for its remaining stores.

“Those 44 stores have a total of 2,788 associates, of whom 1,027 are full-time,” Mulligan said.

Employees at the Muncie locations are currently facing an uncertainty about what will happen to their jobs. There are a total of 116 employees, with 66 of those being full time at the McGalliard location and 101 employees at the Tillotson location according to a WARN notice released by Indiana’s Department of Workforce Development on May 8.

There was no information about the number of full time workers at the Tillotson location in the notice.

The document states that the possible closing of the stores is due to “a period of unexpected difficulties and increased competition resulting in poor sales performance.”

It goes on to say that employees at several locations could be terminated in 60 days or earlier if the company is unsuccessful in its efforts to find a buyer or business partner.

The other Marsh Supermarkets in Muncie located could also be closed, but they weren't part of the notice.

Mayor Dennis Tyler responded on Twitter after news broke about possible closings.

Amy Shelton, a Middletown resident who works in Muncie, was disappointed after hearing about the possibility of the Marsh on Tillotson closing. She often goes to the supermarket to go grocery shopping after work.

“I hope it doesn’t [close]. I hope they find a buyer, I mean I’m optimistic that maybe it won’t go out, but if it does it will be sad to see it go," Shelton said. "The employees here have been here for years. I hate it for all those people who will not have a job.”

Angela Dailey, a Parker City resident who also works in Muncie, shops at the Tillotson Marsh often and was "very surprised" about the news of possible closings.

She said she would have to change her routine if the Tillotson location does close.

Christopher Young, a Muncie resident who lives down the street from the Marsh on Mcgalliard visits the store almost every day.

"Having to drive all the way out to Meijer or Walmart is going to be a pretty big hamper on our daily trips,” Young said. “I'm really hoping Kroger or somebody moves in here if Marsh goes under.”

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