Discount grocer Save A Lot has sold all seven of its Milwaukee-area store locations to a Cleveland-based firm, Yellow Banana LLC.
The company purchased a total of 32 corporate-owned stores across the Cleveland, Chicago and Milwaukee metro areas. Those stores collectively generate annual revenues of more than $130 million, according to a news release.
The seven Milwaukee-area Save A Lot stores are located in Milwaukee, at 4821 N. 76th St., 6410 N. 76th St., 6201B N. Teutonia Ave., and 2322 W. Oak St.; in Racine, at 500 State St. and 3701 Durand Ave.; and West Allis, at 7540 W. Oklahoma Ave.
As the stores' new owner, Yellow Banana employs approximately 90 associates in Wisconsin and plans to hire an estimated 20 to 30 people in Milwaukee in the short term, the company said. The 400-plus employees at the 32 recently purchased stores will maintain their current wages, health insurance and retirement benefits.
Yellow Banana is a subsidiary of Cleveland-based 127 Wall Holdings LLC, a holding company co-founded by Walker Brumskine, Ademola Adewale-Sadik and Michael Nance. They are joined by Joseph Canfield, co-founder of 127 Wall Holdings, according to the release.
"We are thrilled to partner with Save A Lot on this opportunity to invest in underserved, predominantly minority communities in three major cities," said Brumskine.
Yellow Banana CEO Joseph Canfield noted that Save A Lot stores are among the few options for healthy, affordable groceries in some underserved markets.
Next year, Save A Lot stores now owned by Yellow Banana will undergo a significant remodel to fully reflect Save A Lot’s updated brand image. Interior and exterior changes will include new decor, upgraded flooring and lighting, and updated produce and meat cases. In addition, Yellow Banana plans to expand each store’s assortment of local and regional products.
"(Yellow Banana's) near-term investment to substantially and visibly upgrade all stores will only further lead to a profound impact on how customers enjoy the Save A Lot experience for many years to come," said Chris Hooks, executive vice president and chief merchandising officer at Save A Lot.
The Earth City, Missouri-based grocery chain has approximately 1,000 stores in 32 states.
127 Wall Holdings was represented in the transaction by Corbel Capital Partners as financing partner and Squire Patton Boggs as legal counsel.