Overview
- Save A Lot announced it has ended its operational agreement with Yellow Banana, leaving seven Chicago Save A Lot locations at risk of closing this Saturday unless a new investor or supplier steps in.
- Yellow Banana received about $13.5 million in city redevelopment funding to renovate six stores and agreed to keep them grocery stores through at least 2035, and city officials say they may seek to recoup taxpayer money if the locations go dark.
- Company and city officials point to a chain of problems that led to the split, including the April death of Yellow Banana CEO Joe Canfield, repeated vendor lawsuits and municipal fines, sanitation complaints, and the operator’s failure to meet hiring and diversity requirements.
- Store revenue also plunged after cuts to SNAP/EBT benefits, with Save A Lot reporting about a 26% drop in SNAP transactions that contributed to inventory shortfalls and deeper financial strain on the operator.
- City leaders, Save A Lot, and Yellow Banana are pursuing rapid options to keep the buildings open for grocers and to find new operators, and the redevelopment contracts require re-occupancy within a year for most sites and 18 months for the Englewood location.