Save A Lot is switching from corporate to local ownership of some stores in Cleveland, Ohio, Illinois and Wisconsin as Yellow Banana purchases 32 of the stores in an effort to convert corporate ownership to local ownership
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CLEVELAND & CHICAGO & MILWAUKEE-(BUSINESS WIRE)-Save A Lot, one of the largest discount grocery chains in the U.S., announced Tuesday the completion of the sale of 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. There are some 20 Save A Lot stores in greater Cleveland, including in locations in Cleveland, Cleveland Heights, Maple Heights and Parma, and Yellow Banana has bought up some but not all of those stores for its expansion project, in addition to select stores it purchased in Chicago and Milwaukee.
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. The three met while earninga law degree at Yale Law School. They are joined by seasoned operator and 127 Wall Holdings co-founder Joseph Canfield.
“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.
Ademola Adewale-Sadik agreed and said that "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 said it intends to employ all of the over 400 store associates and maintain their current wages, health insurance and retirement benefits. The stores will continue to emphasize convenience, offer high-quality products, and deliver great value Yellow Banana also said that it 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 remodeling in 2022 to fully reflect Save A Lot’s updated brand image. This is designed to 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.
Michael Nance, who grew up frequenting one of the Cleveland area Save A Lot locations now owned by Yellow Banana, recognized the opportunity that a partnership with Save A Lot represents.
“It is an honor to invest in communities like the one in which I was raised," said Nance. "The philosophy that guides our collaboration with Save A Lot is centered on providing both food and job security to those communities that are most in need."
Joseph Canfield, who serves as Yellow Banana’s CEO, said that Save A Lot stores are sometimes the only grocery stores that serve local communities.
“In many cases our stores are the only accessible option for healthy, affordable groceries, and we will work hard to earn our place as the beloved hometown grocer across our communities," said Canfield.
A spokesman from Save A Lot said that Save A Lot team welcomes Yellow Banana to its network.
“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.
Corbel Capital Partners served as financing partner and Squire Patton Boggs served as legal counsel to 127 Wall Holdings in connection with the transaction.
“It is a pleasure to facilitate this deal between 127 Wall Holdings, Yellow Banana and Save A Lot, and to see an important need filled by offering quality foods at affordable prices for countless communities,” said Michael Jones, principal at Corbel Capital Partners. “We expect this to be only the start of future growth and collaboration with 127 Wall Holdings, Corbel and Save A Lot.”
About 127 Wall Holdings, LLC
127 Wall Holdings, LLC is a minority-owned holding company that supports promising entrepreneurs and businesses by delivering the thoughtful capital and operational insight that they need in order to effectively scale. Learn more at www.one27wall.com.
Clevelandurbannews.com and-Kathywraycolemanonlinenewsblog.com, Ohio's most read Black digital newspaper and Black blog.Tel: (216) 659-0473 and Email: editor@clevelandurbannews.com.
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