United Natural Foods Inc.’s newly acquired subsidiary, Supervalu Inc., has entered into a definitive agreement whereby Coborn’s Inc. will acquire seven Hornbacher’s locations, as well as Hornbacher’s newest store currently under development in West Fargo, North Dakota.
“The sale of Hornbacher’s to Coborn’s is an ideal outcome for our associates and the Fargo-Moorhead community,” said Sean Griffin, Supervalu CEO. “As we previously discussed, our strategy is to focus on the wholesale business going forward, so finding a strategic buyer for Hornbacher’s with continued supply opportunity was a top priority. Coborn’s is a long-standing Supervalu wholesale customer, and we’re excited that they will carry on the Hornbacher’s name and tradition of quality products and service.”
The Hornbacher’s locations included in the sale are:
- 1433 S University Drive, Fargo, North Dakota
- 1532 S 32nd Avenue S., Fargo, North Dakota
- 2510 N Broadway Avenue, Fargo, North Dakota
- 4101 S 13th Avenue S., Fargo, North Dakota
- 4151 45th Street South, Fargo, North Dakota
- 101 11th Street South, Moorhead, Minnesota
- 950 40th Avenue S., Moorhead, Minnesota
- West Fargo store currently under construction
Matt Leiseth, who is currently President of Hornbacher’s, will continue leading the Hornbacher’s group of stores in his new role with Coborn’s, Inc. Leiseth will serve on Coborn’s, Inc.’s leadership team, but will continue to office out of Fargo with his team so he can best support the Hornbacher’s stores.
“We saw this as an opportunity to further invest in the thriving Fargo-Moorhead area with Supervalu exiting the retail business,” said Chris Coborn, chairman, president and CEO of Coborn’s Inc. “Hornbacher’s is a respected grocery retailer, they’re doing everything right. We intend to let them continue operating as-is so there is no change to their guest experience.”
The transaction is expected to close before Dec. 25, subject to customary closing conditions. As part of the sale, Coborn’s plans to retain the Hornbacher’s name and will enter into a long-term agreement for Supervalu to serve as the primary supplier of the Hornbacher’s locations. In addition, Supervalu will enter into an expanded supply relationship with Coborn’s. Both of these supply agreements will include minimum purchase requirements.
“We appreciate the tremendous service of our associates and their unwavering dedication to our customers through the years,” said Anne Dament, Supervalu EVP, retail, marketing and private brands. “I know the store teams and staff will do an amazing job supporting Coborn’s and continuing to make Hornbacher’s a popular choice for the local community going forward.”
Hornbacher’s first opened as Ted’s Supervalu in Moorhead, Minnesota, by Ted Hornbacher in 1951. Supervalu acquired the banner in 1975, which now operates eight locations in the Fargo-Moorhead area and Grand Forks, North Dakota. ]
The Hornbacher’s store in Grand Forks, North Dakota, is not included in the sale to Coborn’s and will close. Liquidation will begin at the store on Monday, Dec. 3, and will close as the inventory liquidation is complete.