Six Save A Lot stores in Chicago operated by Yellow Banana could close as early as the end of this week following the death of the company’s CEO and a sharp decline in SNAP-funded sales, according to multiple published reports.
It’s been reported that the stores, which were renovated and reopened through a $26 million partnership with the City of Chicago, have struggled financially following the April death of Yellow Banana CEO Joe Canfield, who reportedly suffered a fatal stroke. Sources were told that Canfield had been the driving force behind the project and that the company has been unable to replace his leadership.
The stores have also been hit by reduced Supplemental Nutrition Assistance Program (SNAP) spending. According to the report, SNAP purchases accounted for nearly half of store revenue, with SNAP sales declining roughly 27% year over year after recent federal benefit reductions.
Save A Lot reportedly has been supplying inventory to the locations for several months in an effort to keep the stores operating but has since ended its arrangement with Yellow Banana. The wholesaler said it remains willing to work with another operator or community-based organization should a new ownership solution emerge.
“When these stores encountered significant financial headwinds under Yellow Banana’s ownership, Save A Lot took on additional operational responsibilities to keep these stores open and maintain continued service to customers,” a company spokesperson reported.
The potential closures would represent another setback for efforts to improve food access on Chicago’s South and West sides. The stores had undergone extensive renovations, including new refrigeration equipment, flooring, lighting and fixtures, after years of delays tied to construction, workforce requirements and community engagement.
If no new investor or operating partner emerges, employees have reportedly been notified of possible layoffs, with pay continuing through the end of the month.
Why it matters: The situation highlights the financial vulnerability of grocery stores serving low-income communities, where changes to SNAP benefits can have an outsized impact on sales. It also underscores how leadership transitions and access to capital can determine the long-term viability of food-access initiatives in underserved neighborhoods.