C&S Wholesale Grocers was the high bidder in a marathon auction for the assets of Associated Wholesalers Inc., sources told SN.

If approved at a court hearing scheduled for later this week, the Keene, N.H.-based wholesaler will gain control of AWI’s independent distribution business based in Robsonia, Pa., as well as its New Jersey-based White Rose wholesale business, serving Northeast chains including Fairway Market and Met Foods.

The winning bid, totaling around $288 million, was submitted early Saturday morning, the source said, more than 12 hours after the auction began, sources said. C&S and Supervalu were the only bidders. The winning bid was nearly $100 million more than the “stalking horse” offer C&S made at the time that AWI filed for bankruptcy protection with the intention of selling itself in early September.

Since C&S is prime supplier to A&P, could it buy leases from the troubled Montvale-based retailer in regions it might wish to exit, and sublease those locations to current C&S wholesale customers, so not to lose the volume in those A&P liquidated locations, similar to the recent Carolina Piggly Wiggly deal? Example: If the current White Rose client Thriftway/Shop N Bag group in Philadelphia area signs on with C&S, and C&S acquires select Pathmark and Super Fresh stores, Thriftway/SnB owners could negotiate leases for those locations.

Read More: http://supermarketnews.com/retail-financial/sources-cs-wins-bidding-awi#ixzz3HSgLPpMH