Published in Breaking News

Plumb’s grocery stores close as new owner takes over assets

BY Monday, February 20, 2017 08:48am

MUSKEGON — Plumb Inc., a Muskegon-based grocery chain, has ceased all operations, according to a letter the company sent to its creditors.

The chain operated three Plumb’s Valu-Rite Foods stores along the lakeshore in Muskegon, North Muskegon and Whitehall.

According to a report on MLive, the stores will be rebranded and run by new owner LM Foods LLC. The company expects to unveil a new name for the stores, as well as remodel and re-merchandise the locations.

In the letter to creditors obtained by MiBiz, Plumb’s cited “numerous challenges facing our industry, as well as the effects of recent economic conditions in the area in general” as reasons behind the closure.  
“[C]ontinuing losses have left management with no other option but to close its doors,” according to the letter.

LM Foods was the chain’s sole secured creditor, according to the letter. The Menominee-based company accepted all the personal property assets. According to the letter, LM Foods was owed more than the value of all the company’s assets.

Plumbs will not go through a formal bankruptcy process as the company lacks the resources to go through the proceedings and any further liquidation of assets would go to LM Foods, according to the letter.

LM Foods’ registered agent is Tom Kuber, owner of Menominee-based Great Lakes Foods. The food distribution firm is listed on the Plumb’s website as the store’s distributor. According to media reports, the company started serving Plumb’s in November 2016.  

Attempts to reach Kuber were not successful.

Plumb’s closed stores in Norton Shores and Newaygo late last year.

Read 4201 times Last modified on Tuesday, 21 February 2017 09:24