The coronavirus pandemic has upended many industries since taking hold in the United States nearly six months ago. However, supermarket operators have been largely immune to the disruption, and in fact many enjoyed record sales as consumers hunkered down and stocked their pantries with everything from potatoes to toilet paper.

But the COVID-19-related surge was not enough for KB US Holdings Inc., parent company of the Kings Food Markets and Balducci’s chains, which filed for Chapter 11 bankruptcy protection on Aug. 23 and was presented with a $75 million buyout offer from New York investment firm TLI Bedrock LLC.

In its declaration filed in U.S. Bankruptcy Court in White Plains, NY, M. Benjamin Jones, a restructuring specialist with Ankara Consulting Group, said KB had experienced “historically low” earnings before the pandemic, which it blamed on competitive pressures, labor costs and pension obligations. This adversely affected its liquidity and cash flow, resulting in a default on $114 million in senior debt and the cancellation of planned investments for store renovations.

“Although the company’s liquidity has improved during the COVID-19 pandemic, the company recognizes that its current liquidity is only temporary, and that it must seek a permanent solution to address its historical liquidity constraints,” Jones said in the filing papers.

TLI Bedrock has agreed to pay $75 million for KB’s assets, subject to higher bids at auction. KB is currently operating with a $20 million bankruptcy loan from its lender to enable stores to remain open pending a sale.

Kings was founded in 1936 as Kings Super Markets with a single location in Summit, NJ. It opened more locations in subsequent years, largely along railroad lines around New York City. The Parsippany, NJ-based company changed its name to Kings Food Markets in 2012 to better reflect on its core mission of providing consumers with high-quality foods items.

Kings purchased Balducci’s, a specialty foods stalwart in New York City with a legion of devotees, in 2009. Together, the chains operate 35 locations — 25 Kings and 10 Balducci’s — in New York, New Jersey, Connecticut, Virginia and Maryland, employing more than 2,100 people.