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Marsh to shut down 8 stores by end of month

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Marsh Supermarkets Inc. on Thursday morning announced to employees that it will close eight stores, including five in the Indianapolis area, by the end of the month.

The Indianapolis closings are at 2802 Lafayette Road and 5249 E. Thompson Road, and at 6121 Crawfordsville Road in Speedway.

Locations in nearby Franklin and Lebanon also will shut their doors. Two stores in Muncie will close.

In addition, a store in Franklin, Ohio, will close.

“Customers have spoken and we are reacting to the realities of the markets and making difficult decisions to address the long-term health of the company,” Marsh said in a prepared statement. “This action is the first part of a three-year plan we are implementing this year to position Marsh Supermarkets for growth and profitability. Our strategy is to remodel, rebuild and re-banner our properties.”

Competition is fierce in the grocery business everywhere, as discounters such as Walmart continue to siphon off customers, and specialty grocers such as Whole Foods gain market share.

Marsh is operated by Florida-based Sun Capital Partners, which bought the locally based supermarket chain in 2006. It hired an investment adviser and solicited offers in 2009 to sell the company, but got no takers.

Marsh said in the statement that it is working with employees affected by the closings and, when possible, will place them elsewhere in the company. Employees unable to be placed will receive a severance package. It was not immediately clear how many employees would be affected.

Following the closings, Marsh will operate 78 stores in Indiana and Ohio.

Closing such a large amount of stores at one time is unusual for Marsh.

In 2011, it closed three locations in one month. They were in Connersville, Rushville and Shelbyville.
 

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  • Marsh and VP
    Marsh does not currently own Village Pantry, though both are owned by Sun Capital.
  • Marsh
    Don Marsh ruined the Marsh brand by using the corporation as his personal piggy-bank to fund his perversions.
  • Marsh has gone downhill
    Went to Marsh a couple weeks ago at 62nd and Keystone. The lettuce was all wilted and their roma tomatoes were $1.99/lb. Left and went to Kroger and the lettuce there (and at Walmart) were very fresh and the roma tomatoes at Kroger were a buck/lb cheaper! Hate buying produce at Marsh.
  • Giant Eagle
    I used to work for Giant Eagle. When Marsh first announced they were selling years back I thought Giant Eagle would purchase. Now with Giant Eagle opening some stores locally I suspect, if current Marsh owners want to sell, that Giant Eagle might step forward. Giant Eagle is pretty well run, large with capital, and will probably be welcome addition locally. My family used to to shop almost exclusively at Marsh, but after their purchase and the changes that followed we rarely visit.
  • Correct me if I am wrong, JBindy...
    but I do not believe the VP stores were sold when Marsh was. I think they were seperated at that time.
  • They have two pieces a chain needs to grow
    A supermarket and a gas/c store chain in village Pantry. Which means less land purchases for new locations.
    • You are so right!
      Yes, Giant Eagle is gathering at the gates - and they will be formidable. They are very well run and popular with their customer base, particularly young adults. When I heard they had plans to put stores in Indianapolis I could not help but imagine the impact on Marsh. They are very nice stores.
      • Remodel?
        If they wan to remodel they should start with the Marsh in Irvington. It hasn't been touched in decades.
      • Here comes Giant Eagle
        This is just the start. Finding a good mix of 50-60 stores to purchase here. Just waiting for big announcement

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        1. How can any company that has the cash and other assets be allowed to simply foreclose and not pay the debt? Simon, pay the debt and sell the property yourself. Don't just stiff the bank with the loan and require them to find a buyer.

        2. If you only knew....

        3. The proposal is structured in such a way that a private company (who has competitors in the marketplace) has struck a deal to get "financing" through utility ratepayers via IPL. Competitors to BlueIndy are at disadvantage now. The story isn't "how green can we be" but how creative "financing" through captive ratepayers benefits a company whose proposal should sink or float in the competitive marketplace without customer funding. If it was a great idea there would be financing available. IBJ needs to be doing a story on the utility ratemaking piece of this (which is pretty complicated) but instead it suggests that folks are whining about paying for being green.

        4. The facts contained in your post make your position so much more credible than those based on sheer emotion. Thanks for enlightening us.

        5. Please consider a couple of economic realities: First, retail is more consolidated now than it was when malls like this were built. There used to be many department stores. Now, in essence, there is one--Macy's. Right off, you've eliminated the need for multiple anchor stores in malls. And in-line retailers have consolidated or folded or have stopped building new stores because so much of their business is now online. The Limited, for example, Next, malls are closing all over the country, even some of the former gems are now derelict.Times change. And finally, as the income level of any particular area declines, so do the retail offerings. Sad, but true.

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