CLEVELAND — Save A Lot has sold 32 company-owned stores across the Greater Cleveland, Greater Chicago and Greater Milwaukee areas to Yellow Banana LLC, as part of the discount grocer’s ongoing efforts to convert corporate-owned stores to local ownership.
The 32 stores generate annual revenues in excess of $130 million, immediately positioning Yellow Banana as one of Save A Lot’s largest Retail Partners nationwide.
Yellow Banana is controlled by 127 Wall Holdings LLC, a minority-owned holding company co-founded by Walker Brumskine, Ademola Adewale-Sadik and Michael Nance.
“We are thrilled to partner with Save A Lot on this opportunity to invest in underserved, predominantly minority communities in three major cities,” Brumskine said.
Adewale-Sadik added, “As the COVID-19 pandemic has made clear, providing affordable, high-quality nutrition to working families is an essential service that creates meaningful impact.”
Yellow Banana intends to continue to employ all 400 store associates and maintain their current wages, health insurance and retirement benefits. The stores will continue to emphasize convenience, offer high-quality products, deliver great value and promote easy-to-shop store experiences. Yellow Banana also intends to expand each store’s assortment of local and regional products and hire talent from local communities.
Each of the stores will undergo a significant remodel in 2022 to fully reflect Save A Lot’s updated brand image. This will deliver an enhanced shopping environment both inside and outside the stores, including new décor, upgraded flooring and lighting as well as updated produce and meat cases.
“We are thrilled to have the passionate team at Yellow Banana join our Save A Lot network,” said Chris Hooks, executive vice president and chief merchandising officer of Save A Lot. “Their mindset and commitment to service, together with Save A Lot’s mission of providing convenient access to high-quality foods, will be a winning combination. Their 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.”
Corbel Capital Partners served as financing partner and Squire Patton Boggs served as legal counsel to 127 Wall Holdings in connection with the transaction.