Chicago grocery chain collapse leaves neighborhoods without food stores

The closures follow Save A Lot's decision to end its licensing agreement with Ohio-based operator Yellow Banana after what the company described as ongoing financial problems. The stores closed just a few years after plans were announced to expand grocery access in areas considered food deserts.

Many customers arrived hoping to stock up before the doors shut. At the West Lawn location, shelves were mostly bare, fresh produce was gone, and remaining items were marked down by at least 50 percent. Some shoppers filled carts with discounted groceries, while others couldn't find what they came for.

Save A Lot spokeswoman Sarah Griffin said "financial headwinds" under Yellow Banana's ownership led to the decision, adding that "dramatic cuts to SNAP benefits" were a major factor. She said Save A Lot informed Yellow Banana at the end of June that it was ending the operating agreement after failing to find a way to keep the stores open.

The closures also leave employees out of work. One worker, who declined to be identified, said he had worked for Save A Lot for more than 22 years.

"Now I'm out of work," he said.

For shoppers, the loss means longer trips and likely higher grocery bills. Loretta Claiborne, 78, said the Auburn Gresham store near her home served many seniors and disabled residents who have limited transportation.

"How are they gonna get what they need?" she wondered. "We have to eat, too." Claiborne said the stores offered prices many residents depended on. "It's good deals here," Claiborne said. "I could get everything I need."

Gladys Roman, 64, who lives two blocks from the West Lawn location, bought frozen meat, canned goods, juice and cooking oil before the store closed. She said the neighborhood will feel the loss, though she's especially concerned about employees she had come to know.

"The neighborhood is going to miss them," Roman said. "Something better is going to come their way. I know it. We just have to stay positive."

Yellow Banana previously received a $26 million redevelopment agreement with the city of Chicago, including more than $13 million in taxpayer financing to renovate and reopen Save A Lot stores. Ald. Marty Quinn told the Chicago Sun-Times that Save A Lot has also requested an additional $3 million from the city to recover funds provided to Yellow Banana. The city's Department of Planning and Development said it is exploring options to recover taxpayer money if necessary.