CLEVELAND & CHICAGO & MILWAUKEE--(BUSINESS WIRE)--Save A Lot, one of the largest discount grocery chains in the U.S., today announced 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.
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 earning JDs from Yale Law School; Brumskine and Adewale-Sadik also earned MBAs from Harvard Business 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 Walker Brumskine. Ademola 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 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, 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.
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. 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,” said Nance.
“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 Joseph Canfield, who serves as Yellow Banana’s CEO.
“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.
“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.
About Yellow Banana, LLC
Yellow Banana, LLC (“Yellow Banana”) is a retail grocery platform that operates 32 stores under the Save A Lot banner across the Greater Cleveland, Greater Chicago and Greater Milwaukee regions of the United States. Founded in 2021 as a subsidiary of 127 Wall Holdings, Yellow Banana endeavors to deliver essential nutrition to working families at affordable prices.
About Corbel Capital Partners
Corbel Capital Partners (“Corbel”) is a Los Angeles-based independent investment firm that makes non-control investments in the form of creatively tailored structured debt or equity securities in lower market businesses. For more information, please visit www.corbelcap.com.
About Save A Lot
Founded in 1977, Save A Lot is one of the largest discount grocery store chains in the U.S., with approximately 1,000 stores in 32 states. Save A Lot remains true to its mission of being a neighborhood grocer, providing unmatched quality and value to local families. Customers enjoy significant savings compared to traditional grocery stores on great tasting, high quality private label brands, national brand products, USDA-inspected meat, farm-fresh fruits and vegetables, and other non-food items. Save A Lot is a division of Moran Foods, a premier wholesale grocery distribution company specializing in private brand procurement and supply. For more information visit www.SaveALot.com and follow Save A Lot on Facebook (facebook.com/savealot) and Instagram (@SaveALotFoodStores).
