Stop & Shop in Deal to Buy Control of Bradlees Store Leases

QUINCY, MA-Stop & Shop Supermarket Co. bought control of Bradlees store leases for a minimum of $150 million. The locally-based supermarket chain owned the now bankrupt retailer for 30 years until 1992. Stop & Shop is the guarantor on some of the leases and could encounter some liability issues.

To prevent any complications–including the possibility that Stop & Shop will have to pay up on its liabilities–Stop & Shop’s agreement with Bradlees, guarantees that Bradlees will receive at least $150 million for its leases and other facilities. If other companies bid higher on the leases, which is likely, Stop & Shop and Bradlees would split the proceeds, unless a company bids higher than Stop & Shop on the whole package of leases.