FAME aids Assoc. Grocers customers
The Finance Authority of Maine is stepping up to help independent grocery store owners affected by the closure of Associated Grocers of Maine.
FAME last week sent letters to the more than 200 stores that were previously supplied by Gardiner-based Associated Grocers informing operators of a loan insurance program, according to the Morning Sentinel. FAME, a quasi-governmental agency, is providing up to 50% insurance on loans made by financial institutions to the stores with an outstanding account with Associated Grocers. Last month, a judge put the retailers' cooperative in receivership per a request from The Bank of Maine, which is owed $6 million, and asked the receiver to shut it down. Camden National Bank, which holds a $4.8 million mortgage on the company's property, asked the court to stay the receivership, saying the move did not protect its interests. Lawyers for the two banks are now working out a modified receivership that will be presented to the court.
Last week, The Bank of Maine, formerly Savings Bank of Maine, said it has given some of the stores loans to allow them to purchase the cooperative's inventory at a 20% discount to keep their shelves stocked. The bank had also interviewed a few of its 142 employees, all laid off last week, for jobs with the bank.
Most Recent
Most Recent
Comments